El Salvador Considers Using Bitcoin for Trade with Russia
El Salvador has reportedly proposed using digital assets like Bitcoin for trade with Russia in order to work around the economic sanctions imposed on Moscow. Alexander Ilyukhin, Russia’s first secretary at the Nicaraguan embassy and head of its El Salvador office, shared this information in an interview with Russian state media outlet Izvestia.
Benefits of Using Crypto for Trade
The use of cryptocurrency in trade between the two countries aims to mitigate the impact of sanctions and address logistical challenges faced in traditional trade channels. While Russian exports to El Salvador have remained steady, imports have seen a significant decrease.
Implementing a crypto-based trade system could provide a practical solution to these financial obstacles. According to Ilyukhin, “Calculating transactions is complicated due to El Salvador’s official use of the U.S. dollar. As an alternative, El Salvador is proposing the use of cryptocurrency for trade transactions.”
El Salvador’s Adoption of Bitcoin
In 2021, El Salvador made history by becoming the first country to adopt Bitcoin as legal tender. This move signaled the nation’s openness to embracing digital assets in its financial system and could pave the way for innovative solutions in international trade.
Russia’s Pro-Crypto Stance
Russia has firmly established itself as a country that supports cryptocurrency, evident from its daily Bitcoin purchases and regulations that promote the sector. However, there are challenges, such as the ban on crypto as legal tender in 2021.
Exploring Alternative Solutions
In light of the limitations posed by the ban on crypto as legal tender, Russia is exploring other avenues to strengthen trade. Experts believe that these efforts could help address trade barriers caused by Western sanctions, which have disrupted trade with major partners like China.
Recent Developments in Russia
Recently, the Russian State Duma passed a bill legalizing Bitcoin mining and allowing the use of crypto for international trade. Lawmaker Anton Gorelkin highlighted the significance of the bill in a Telegram post, emphasizing the updates that have been made to support the crypto industry.
The Ban on Cryptocurrency Circulation in El Salvador
In a recent development, the government of El Salvador has implemented a ban on the organization of cryptocurrency circulation. This decision has sparked concerns among industry representatives, who fear the impact it will have on the digital currency market in the country.
Although the ban on advertising digital currencies remains in place, the government has announced that it will be included in the amendments to the Federal Law ‘On Advertising.’ This move suggests that there may be further restrictions on the promotion of cryptocurrencies in El Salvador in the near future.
Latest News from El Salvador
Stay updated with the latest news and developments regarding the cryptocurrency ban in El Salvador by following our Alpha Market Report. We will provide you with the most recent information and analysis on how this decision is affecting the digital currency industry in the country.