El Salvador proposed using Bitcoin for trade with Russia
Bitcoin could be the currency for commercial exchange between El Salvador and Russia due to problems with settlements in US dollars
El Salvador has proposed using Bitcoin in commercial transactions with Russia because the official currency of the Central American nation is the US dollar, which makes settlements between both nations difficult.
The proposal was confirmed by the first secretary of the Russian Embassy in Nicaragua and head of the El Salvador office, Alexander Ilyukhin.
Given the proposal, it is important to remember Russia’s rigid stance towards cryptocurrencies. On the other hand, the recent decision of Putin’s government to allow Bitcoin mining under strict controls should be mentioned.
According to the Duma, the law establishes that “the Bank of Russia will be able to conduct three experiments starting September 1 of this year: on the use of Cryptocurrencies for settlements in foreign trade, on carrying out Cryptocurrency exchange operations and on the creation of an electronic bank platform for operations with Cryptocurrencies based on the NPS.”
Russia and El Salvador have been strengthening their trade ties since 2017. After the cooling caused by the quarantine due to Covid-19, El Salvador is interested in promoting trade relations not only with Russia but with the BRICS countries. “They understand that they need to diversify their economic ties and not focus only on the United States and the World Bank.”
M.Pino
Source: cointelegraph
(Reference image source: André François McKenzie in Unsplash)
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