Bitcoin Forum

What do you think of this news? Russia could accept Bitcoins from some countries as payment for oil and gas supplies: the BBC writes, quoting the head of the Duma's energy commission, Pavel Zavalny.


https://www.bbc.com/news/business-60870100

It is a smart move by the Russian government as the energy chief says it would accept Bitcoin for oil and gas, including Russian rubles, Chinese yuan, Turkish lira. Let us see if this will be done by Russian Federation‘s energy chief Pavel Zavalny, if done and successful bu accepting bitcoin, this is a smart move. But what j am afraid about is that if Bitcoin bull run starts, Russia will be able to fund the Ukraine war more. Russia do not accept US Dollar again.

it would be great if Russia started accepting cryptocurrencies for their official payments.. this will open a new chapter in the global adoption of cryptocurrencies, and maybe because of this more countries will start accepting cryptocurrencies for their official payments

They can do that, no one's going to stop them and they can simply convert it quickly into Ruble. But the thing is that they should allow exchange companies to operate on their country so that there's still liquidity where they can send those bitcoins paid to their oil. Well, the technical of it can be done by them smoothly as long as they're really going to adopt it. Everything is going to be easy if they start doing that and there's no longer a need for them to go through a dollar exchange rate since they want to go Ruble. So that would be Btc/Ruble, we know that for bitcoin, it's going to be a benefit after all.

Since the United States imposed sanctions on trade with Russia in a bid to suffocate them economically into abandoning the war with Ukraine, their biggest exports which is Oil and gas has been avoided by most countries that patronize them, not mainly due to reason that they are in support of the decision from United States, but because they are threatened by the facts that if they go against the United States and maintain patronage, they may come under sanctions as well.

The decision to abstain from the Russian oil and gas is easier for some countries than it has been for some others that have already become dependent and the current situation is really affecting them. Russia understands the situation and with this consideration towards bitcoin payment may be able to take advantage of the situation.

With this method, you may be surprised that some countries that have openly criticized Russia for the invasion will still in secret patronize them, but proper intelligence can still give them away.

Russia said it wants to accept ruble as payment for gas, but various EU countries said they won't do it and that they believe it violates the contracts they had with Russia. So if we're looking at "unfriendly" countries, they're NOT going to buy gas using ruble, and they would likely say the same thing about crypto payments: it violates the contracts they had with Russia. As for "friendly" countries, why wouldn't they just pay in ruble? And how is increasing the usage of Bitcoin can help boost the Russian fiat, exactly?
I understand that they are starting to feel the hit of the sanctions and starting to see that it's only going to get worse, so they need solutions to stabilize the economy fast, but I hope they won't exploit cryptos for that because that can give cryptos bad reputation in the eyes of many people and also because I don't want Russia to find a way of elevating the pressure of sanctions.

That might not get them anywhere because Russia is ready for the acceptance of bitcoin as payment BUT, are the other nations ready to pay in bitcoins? I don’t think. Why would any other government go beyond their countries set out rules and regulations if they have already regulated the bitcoin in their country or if they don’t wanna promote the bitcoin?

For example, any bitcoin transaction in India would cost 30% taxes at the end of financial year. This means the same taxes will be recovered by Indian government by imposing them on the fuel purchases by common man.

Do you really think they gonna like it?

Oh yes, fresh news! I think this is a great opportunity to develop the circulation of digital currency in the world. Of course, this will take time, because for normal work with cryptocurrency, it is necessary to integrate the mechanism of cryptocurrency turnover into the country's financial system. I hope mining will be legalized in many countries and it will be possible to pay in cryptocurrency for a large number of goods and services.

If I am not wrong Putin announced countries can buy their gas only with Rubles now why they need to change their strategy because now the country who are in need of the oil and gas has to rush and ask for the change I don't think Russia will change the strategy or they will allow the local currency trade which is already happened in China. Probably they will add bitcoin as another payment option but the chances are least.

I think this does not mean that Russia wants to introduce the cryptocurrency sphere into its economy, most likely it means that Russia wants to get away from the dollar dependence on paying for natural resources. Recently, the news came that gas will be sold for rubles, but even better for cryptocurrency.

According to the source, only the "friendly" countries have that option. I can't imagine the incentive they would have to pay in crypto unless Russia doesn't accept their local currency (or whatever reserve currency they might be using). Russia is wise to use Bitcoin to avoid sanctions, but crypto isn't circulating enough on the global stage by whatever "friendly" countries to warrant Bitcoin output through commerce between the nations. The only two large players are India and China that are willing to accept Russian oil, and they don't strike me as being pro-Bitcoin.

Once again bitcoin is independent and no one can forbid it if Russia does implement an oil and gas payment system using Bitcoin. But so far, what I've heard is that Russia enforces that every country that wants to buy oil and gas must use the ruble. Because for now, raising the price of rubles is the main thing to strengthen their fiat. But as some Middle Eastern countries have done when the war of payment methods through crypto became the most effective alternative.

Its still on "CONSIDER"
https://www.cnbc.com/2022/03/24/russia-might-take-bitcoin-as-payment-for-oil-and-gas-as-sanctions-rise.html
which means that it wasnt finalized but since there are already some words in related to it then possibly it could really be pushed and this isnt a surprising thing for Russia
to do so since Bitcoin/Crypto is indeed an online currency and maybe they wont really be minding about much their ruble(for now).

It was the expected news from the Russia.All the Swift transfer to top 7 bank was closed.It was made only to reduce the money flow.Now the Russian had used the updated platform to get money.Bitcoin is enough for the money necessary for the war.It also fill the people usage in their country.It’s better to Russia to create their own crypto currency.Then it will help their country flow.

There are too many people who would like this not to happen. I mean it is clear that people do not like Russia right now, but that is really not the case for most of the time in the crypto world since it is decentralized. We can't just decline to let people who we dislike to use bitcoin, if it is decentralized then we just need to accept the fact that it is decentralized and do not really focus on anything else.

If you really want to see bitcoin to be great, then we are going to see both Russia and Ukraine use it, you can't just allow one and disprove of the other one. At the end of the day Russia will be doing fine and we should be happy that bitcoin is used this way.

They could choose to do so but they wont because it wont really affect their economy, why would Putin even want to use cryptocurrency though. Russia wants the other country to purchase their oil and gas supplies by using Ruble so the other countries will need to sell their Euro to purchase Ruble if they want these oil and gas supplies but the other countries wouldnt want to do so

Putin wont settle for an option that benefit both party, he will only settle for the usage of Ruble because this is one of the way to help them recover their economy

This is actually terrible news for bitcoin supporters because it will encourage much more anti-crypto measures from politicians in Europe and North America. It's just part of a dying Russia thrashing around and looking for any little way that they can avoid sanctions or get a little win by hitting back. Realistically Russia could not use this long term and it will draw absolute scrutiny or additional controls if it somehow gained more traction. Even mention of it is going to get more restrictions and intense scrutiny in future, better not to think it's a good idea.

Most probably because of the sanctions this can happen, BTC and Ruble are the only option for them this can also strengthen the value of their money so for sure, this is the only way for them to survive. Its a good news because its adoption but we know western countries wont give up as well so most probably, they might restrict some countries from dealing with Russia or else they will also suffer. Russia is a great source of oil and gas, we can’t just deny it and we really need it on a world market, BTC will be the best option.

If Russia really accepts Bitcoin for the payment of oil and gas, it will be big news for crypto industry. I am sure this will bring big impacts to Bitcoin value in the market. When many countries consider having Bitcoin because they can use it for the payment of oil and gas, this will improve the demand for Bitcoin. Crypto investors also will be more optimistic about the Bitcoin future, they may consider buying more Bitcoin gradually. This situation will trigger the increase in Bitcoin value, I guess.

Russian crypto currency related bulletin already effected market acutely. Now market more than 44k for Russia acceptance of crypto currencies due to considering fuel and gas.

Russia understands that the use of Fiat in the future will be many problems, namely inflation, the presence of Bitcoin is certainly the best Russian solution to be able to be safer and more profitable because future bitcoin prices will be more stable and certainly can be anti-inflation.

They are willing to accept anything (gold, crypto, local currencies) but the dollar because uncle Sam can seize the dollars but not the others. I think every country should do the same. They should either accept their local currencies or some decentralized currency like gold or bitcoin. Local currencies are not always the most practical solution so gold and bitcoin would be the best choices imo.

You are right, in fact Putin by accepting BTC as a means of payment can easily be injected into the Russian economy and thus show that the Ruble is not totally destroyed but isolated with a lack of economic opportunity which is what he wants to sell to the world, In fact, I only know that he wants is that they buy his oil and gas with Rubles, that is the demand, in fact he has what to demand it with, it is obvious that he does not want his economy to collapse and he does what is in his hands to defend it This is something that no one can turn a blind eye to, they cannot fight against it, besides, when this conflict is resolved, I am sure that the price of oil and gas will drop.

This is just a thought for now. Even if such a decision is made in Russia, it remains to be seen how other states will look at paying for Russian oil and gas with bitcoins. After all, when Putin wanted Russia to be paid in rubles, the states refused to do this on the grounds that another currency was indicated in the supply contracts - dollars and euros. It is clear that in this case, Putin wanted to circumvent the sanctions, but Europe did not agree to this. The rest of Europe has also taken a course to abandon Russian oil and gas in order to avoid blackmail from Russia in the future.

I think the same! The Russians can no longer afford to be dependent on the dollar and the euro, while at the same time America and Europe imposing different sanctions on them! They want an alternative and maybe Bitcoin is just what they need, something that neither Europeans nor Americans control! For me, it’s simple, everyone can bargain with what they have and it's normal to try to get the best out of it! As in poker, cards can be good but you also need to know how to play them! So cards are dealt, we can see which cards are being used by some players, but still a lot is hidden, so we will have to wait to see what will happen!
And the situation is getting more complicated day by day! There is too much fake news from all sides, so I don't believe in anything if I can't confirm it from multiple sources!

Hard to believe Russia starts to accept anonymous cryptocurrency as a payment for national resources. It is like trying to solve corruption with anonymity. I can already imagine how many new businesses and companies are going to be nationalized by that move. How much more money will be stolen and how huge new castles politicians would build.

It also allows them to still be a bit dependent on it as well. How? Well, they could earn their money in ruble, or any currency that they could from the nations that did not put sanctions to them, and then use that to purchase bitcoin and keep that going.

This way they would be able to basically move money around however they wish so, since Russian exchanges wouldn't share information and addresses of the Russians, that means we could never know which wallet is Russian or not. This would allow rich people to hide their money from the foreign governments, and still purchase anything if they want to. It is wildly easier way of moving money around anyway, so it is not a bad idea at all.

I don’t know what to make of this. Is this bullish or bearish.

Keep in mind, if they are accepting Bitcoin then the import country needs to buy Bitcoin which is bullish however after they send it to Russia, what will Russia do with it? Most likely sell it back to Rubles which is bearish. So this entire transaction is neutral if anything.

What it will do is create a bad name and people will be saying that Bitcoin is used by criminals and such.

Of course, they are Russians must consider the risk of huge losses to Bitcoin, Russia must be really mature to take into account the advantages and disadvantages in the form of Bitcoin, if suddenly the Bitcoin price drops in seconds, Bitcoin is not as stable as the dollar, Bitcoin can change in seconds, so it is very natural for Russia to consider Bitcoin profit or loss.

Oil and gas transactions are of very high value, if this happens we may get used to seeing transaction volumes of thousands and even tens of thousands of btc in 1 transaction, and this is what makes us worthy to be optimistic that the future of bitcoin is getting brighter because of the russian plan .

Currently, the Russian government is accumulating all foreign currency funds in order to be able to pay off external debt and prevent default.  

Exporting enterprises are forced to sell 100% of their foreign exchange earnings to the state.  At the same time, they do not have any currency left for the purchase of spare parts for technological equipment.  Complex industrial equipment tends to break down and requires periodic overhaul.  

In this situation, bitcoin mining by large industrial organizations is the way out of this very difficult situation.  As a result, exporting enterprises will receive a financial asset to pay for the supply of spare parts from abroad.  

However, this gives exporting enterprises greater independence in making managerial decisions.  

It is likely that this is unacceptable for the central government, which is used to keeping all processes under control.

I guess this could mean a bullishness for crypto market If Russia decides to accept just Bitcoin for those countries who has heavily sanctioned them. But, no Russia will still prefer to let them pay with Roubles for them to recover for their own currency.
So, most probably Bitcoin is not the priority here, just an alternative payment.
It will always going to be the Roubles.
Russia however felt the effect of heavy economic sanctions so I guess they are testing options to recover economically.

I think due to sanctions imposed to them they are resorting to this kind of set up. It's a good news for crypto community because the possibility of bitcoin becoming a payment method even just temporarily could make a positive impact on bitcoin's market price. However, the question would be, are other countries willing to pay in bitcoin? Because after all, not everyone is open with the idea of bitcoin being a payment method, most especially those government officials that are blinded by fiat monetary system.

If other countries would be willing to use bitcoin in order to transact, then good for Russia because at some point easing of transaction could happen. Since transactions is impossible for the moment due to restrictions given to them, using bitcoin as digital method in order to bypass the buying and selling of gas will make it happen. It could be a win-win situation because the other countries would get the the resources at a lower price and Russia will be able to circulate their supply amidst sanctions.

I am not sure if other countries would be willing to do that, but at the same time if Russia requires it, or even makes it like a legal tender thing for that specific purchase, then people may end up starting to use it.

However, their entire emphasis is trying to build something better for the future of ruble, and that means if they started to accept something other than ruble, even if it is bitcoin then it could create a bit of a trouble for them. They need to use Ruble for every single thing that they could, in order to keep it going and that would make a lot more sense in order to power their economy back up again after so many sanctions.

Russia would accept anything for oil and gas. There were comments made about how "cryptocurrencies are too small for Russia"
Then EU making it clear that "Bitcoins is involved in sanctions against Russia"
Them making it clear that they are not going to ban the crypto mining in the country makes it clear that they are in a desperate situation and in the last if they would have tried banning bitcoins they would not do it again since at this moment it's actually very important to get financial aid from some place and since no one would agree to pay in rubles they might be more malleable to pay in Bitcoins therefore I do think that this is something that Russians would try to do. Sell oil for bitcoins but EU won't let them take advantage of cryptocurrencies like that and still try and track them. Also these transactions are not hidden, they are semi transparent therefore I do think that it can be used against them as well.

There is a post here last time which states that Russia will revert to accept rubles and not bitcoin. We should not worry anymore for btc. Every country prioritize their fiat currency because it was their own while btc is only just an adopted. El Salvador that already made btc as a legal tender still have their fiat and I think they still prioritize it over bitcoins.

The sanctions given in Russia are too much so obviously they will feel its effect. They are strong but not strong enough to endure the pain or the effects of this sanctions. We ask if what will Russia do their bitcoins? But, we don't ask our selves the same question. Of course, we will all sell it for a profit because no one holds their btc forever. It can trigger a bear but bulls will always find its way again.

Among the countries, turkey is European country. If this is true, I now see the reason EU is criticizing turkey for not taking side of this war because looking at it turkey is part of the few countries that didn't vote to support the sanction against Russia and they have not been outspoken on it including that they have been receiving Putin in their government house. This therefore means they are having close ties with Russia.