Russia using Bitcoin for foreign trade !

[Olatundespo]

https://x.com/BTC_Archive/status/1871893702098256367

Russia has been struggling to trade with its allies for the past few years due to US sanctions. Currently, there is a fear that US sanctions against several more Russian companies will further harm it. The restrictions on foreign banks to receive the price of export products and the impact of the sole dominance of the US dollar. They have already started using Bitcoin for commercial transactions and experts believe that this is a breakthrough step for Russia. Bitcoin transactions will increase further as an alternative to the dollar in the world.

Bitcoin is currently becoming one of the most important financial strategy for the two most powerful countries in the world.

News Source: https://www.reuters.com/markets/currencies/russia-is-using-bitcoin-foreign-trade-finance-minister-says-2024-12-25/

[stadus]

This is fantastic news for the community, as it proves that Bitcoin can achieve what fiat currencies cannot. It eliminates sanctions because Bitcoin isn’t controlled by any country, especially those that aren’t allies of Russia. This is truly what we call real financial freedom. Seeing Russia take this step will undoubtedly create a ripple effect in the crypto world, sparking new conversations and possibilities.

And we are talking of Billions of dollars here, which would certain increase its demand.

US and UK investigate $20 billion worth of Tether entering sanctioned Russian exchange: Bloomberg

[nestex_one]

Well bravo. Raises a few questions I think.

Will Putin's btc team signup on bitcointalk?
Will this mean that btc as a whole will get tagged as 'backed by russia'?
The Trump-Russia link that's been speculated - does this prove it or is this just some variant causality at work?
What about countries that don't want btc? I know some of them still mark all kinds of crypto as illegal
Does that mean oil will now be tagged to BTC like 0.0004 BTC to the Barrel to generate more revenue as the coin goes up?

[Plaguedeath]

Not sure how I should react, but with this news we can expect some blockchain analysis to mark or blacklist addresses associated with Russia. So, if Russia accept Bitcoin in order to use it for foreign trade, I don't think it's gonna work fine since it can be traced.

The next question is, if Russia want to trade with their allies e.g. Brazil, China, India, South Africa etc, why they didn't choose to use BRICS currency instead?

But, the good thing is there are two big countries are trying to use Bitcoin, if China join this party, it will be really big news.

[Olatundespo]

The next question is, if Russia want to trade with their allies e.g. Brazil, China, India, South Africa etc, why they didn't choose to use BRICS currency instead?

The US new president Donald Trump has threatened to impose 100% tariffs on imports from BRICS countries if they start creating and trading separate currencies as per their resolutions. Among the economically powerful countries, the remaining 7 countries, except for Russia and China, are mostly underdeveloped or developing and cannot afford to face the US threat.

https://edition.cnn.com/2024/11/30/politics/trump-brics-currency-tariff/index.html

[tbct_mt2]

Russia has been struggling to trade with its allies for the past few years due to US sanctions. Currently, there is a fear that US sanctions against several more Russian companies will further harm it. The restrictions on foreign banks to receive the price of export products and the impact of the sole dominance of the US dollar. They have already started using Bitcoin for commercial transactions and experts believe that this is a breakthrough step for Russia. Bitcoin transactions will increase further as an alternative to the dollar in the world.

They know that Bitcoin blockchain operates borderless, globally and Bitcoin transactions can not be censored. If they use Bitcoin blockchain, they are well against sanctions from the USA.

Before Russia, North Korea did many hacks, and money launderings with Bitcoin and cryptocurrencies to have money and avoid sanctions. Russia don't need to be smart to know it and apply it, as they can easily learn it from North Korea, one of their most friendliest countries and allies.

Bitcoin is currently becoming one of the most important financial strategy for the two most powerful countries in the world.

The two most powerful countries in the world, what are they?

You only mentioned Russia. They are most powerful country in the world, really?

Today is 25 December, 34 years since the resignation of Gorbachev, but unfortunately Putin did not help Russia to grow from this milestone, but he destroyed Russia with his dream.

[m2017]

For some reason, the success and recognition \ use of bitcoin at the country level seems like "Satoshi's blessing" for bitcoin at the level of ordinary users. The interest of entire countries in bitcoin as a way to bypass sanctions and make cross-border payments between countries means only one thing: if bitcoin is used at such a high level, then at a lower level (ordinary citizens) bitcoin will not be allowed to be used. This will inevitably lead to bans and criminal prosecution for using bitcoin by ordinary citizens. The use of bitcoin in foreign trade will undoubtedly lead to an increase in cost, but also, in the long term, will lead to a decrease in the "freedom" of bitcoin as a means of p2p payments. In a country in which, for centuries, there is a "good old" tradition of 1st taking everything from private property, and then "evenly" distributing it among the top bosses, one can hardly expect a different fate for bitcoin. Outside this country, the use of bitcoin in foreign trade will be a positive factor, but inside it will be negative.

[Davidvictorson]

The next question is, if Russia want to trade with their allies e.g. Brazil, China, India, South Africa etc, why they didn't choose to use BRICS currency instead?

I too don't know how to react to this. In fact my first reaction is to deny that this is true. They re strong members of BRICS and one time some months ago, I saw the BRICS currency which they say would rival the dollar. Why change to Bitcoin now? This will have no effect on the dollar. And those countries that they would trade with what's their policy on bitcoin. Well, I don't trust journalists they may have taken the words out of context.

[joniboini]

I too don't know how to react to this. In fact my first reaction is to deny that this is true. They re strong members of BRICS and one time some months ago, I saw the BRICS currency which they say would rival the dollar. Why change to Bitcoin now?

If I'm reading correctly it seems like their partner countries are cautious because they don't want to get hit by US sanctions if they process Russia-related transactions. If this is true, I guess they believe that using Bitcoin will obfuscate some of their transactions (we're talking about Russian business btw, at least according to the article) and allow them to convert it to fiat or other currency more easily compared to using BRICS fiat money.

[OcTradism]

If I'm reading correctly it seems like their partner countries are cautious because they don't want to get hit by US sanctions if they process Russia-related transactions. If this is true, I guess they believe that using Bitcoin will obfuscate some of their transactions (we're talking about Russian business btw, at least according to the article) and allow them to convert it to fiat or other currency more easily compared to using BRICS fiat money.

Many nations are fearful that they will be treated badly when Trump returns to the White House and even with future Presidents of the USA. BRICS sounds promising but its potentiality to succeed is unknown or even vague and some nations don't want to hope too high with BRICS' currency and de-dollarization. Two biggest examples are India and Saudi Arabia, they are like two-faced in policies but if they smell that BRICS won't succeed, they will quickly turn over to US. dollar again.

It's easier and more beneficial for them to turn back to US. dollar, no harm with them by leaving this ambitious project that has unknow chance of success.

[john_egbert]

The next question is, if Russia want to trade with their allies e.g. Brazil, China, India, South Africa etc, why they didn't choose to use BRICS currency instead?

The US new president Donald Trump has threatened to impose 100% tariffs on imports from BRICS countries if they start creating and trading separate currencies as per their resolutions. Among the economically powerful countries, the remaining 7 countries, except for Russia and China, are mostly underdeveloped or developing and cannot afford to face the US threat.

https://edition.cnn.com/2024/11/30/politics/trump-brics-currency-tariff/index.html

Smart move from a businessman in action.
That's why we are talking about BTC being used in such a way in the first place 

[ranochigo]

This is fantastic news for the community, as it proves that Bitcoin can achieve what fiat currencies cannot. It eliminates sanctions because Bitcoin isn’t controlled by any country, especially those that aren’t allies of Russia. This is truly what we call real financial freedom. Seeing Russia take this step will undoubtedly create a ripple effect in the crypto world, sparking new conversations and possibilities.

And we are talking of Billions of dollars here, which would certain increase its demand.

Depending on your perspective, I wouldn't call it a huge win for all. This just proves that sanctions can now effectively be circumvented and there are little repercussions for countries or entities to be engaging in crimes against humanity. I think this is a good time to rethink how we can better approach the global issues since sanctions are obviously not as helpful as it seems.

I'm not condoning censorship, but I find it difficult to imagine that it is a positive news since the whole idea about Bitcoin being censorship-free hasn't really been the top priority of most people.

[avikz]

I am not sure if this news is true! But if it is true, then it's a big news! Oil rich countries like Russia using Bitcoin for foreign trade, is a huge thing. The benefits are enormous and many countries are going to be benefitted out of it. Most importantly, it will further devalue USD by allowing the countries to ditch the usual USD route and trade freely without the fear of any sanctions from US. It's lovely to hear!

The world needs balance and Bitcoin can surely bring in that balance by not allowing one big country to dominate others. The balance of financial power is needed in today's world. Is that one big country did not invite Ukraine to join NATO, the Russia-Ukraine war did not happen!

[Marvell1]

The US new president Donald Trump has threatened to impose 100% tariffs on imports from BRICS countries if they start creating and trading separate currencies as per their resolutions. Among the economically powerful countries, the remaining 7 countries, except for Russia and China, are mostly underdeveloped or developing and cannot afford to face the US threat.

https://edition.cnn.com/2024/11/30/politics/trump-brics-currency-tariff/index.html

In the news you provided, Trump asked BRICS not only not to create a new currency but also not to support any other currency to replace USD. That means BRICS members using bitcoin to avoid sanctions or reduce their dependence on the USD will not avoid sanctions from the United States either.
Not to mention, Russia is the only country that accepts bitcoin, while China has even completely banned bitcoin in the country. So that really begs the big question?

Many people are excited about this news and believe that this will help bitcoin become more popular but I am not so sure about that. To me, the US is still a superpower and they can do more than we think, and countries like Russia using bitcoin to confront them is not a good thing.

[shield132]

Well bravo. Raises a few questions I think.

Will Putin's btc team signup on bitcointalk?

I don't think Putin's team will sign up on Bitcointalk because they don't need it. If they create an exchange or something similar, they might create an ANN thread but I highly doubt that, we don't live in 2016 anymore.

Will this mean that btc as a whole will get tagged as 'backed by russia'?

Russia will never back Bitcoin as a whole because Bitcoin is global and decentralized. Most Bitcoin pools are American and Chinese pools and if Russia tries to be dominant in Bitcoin, then keep in mind that other countries will fight for domination

Does that mean oil will now be tagged to BTC like 0.0004 BTC to the Barrel to generate more revenue as the coin goes up?

No, the US Dollar is still the dominant currency and Bitcoin's value is calculated in USD.

The next question is, if Russia want to trade with their allies e.g. Brazil, China, India, South Africa etc, why they didn't choose to use BRICS currency instead?

The US new president Donald Trump has threatened to impose 100% tariffs on imports from BRICS countries if they start creating and trading separate currencies as per their resolutions. Among the economically powerful countries, the remaining 7 countries, except for Russia and China, are mostly underdeveloped or developing and cannot afford to face the US threat.

https://edition.cnn.com/2024/11/30/politics/trump-brics-currency-tariff/index.html

The US can also easily track Bitcoin transactions and threaten countries with 100% tariffs, so this can't be the deal in this situation but they do it anyway, why? Wouldn't Monero be a better choice?

[Helena Yu]

The US can also easily track Bitcoin transactions and threaten countries with 100% tariffs, so this can't be the deal in this situation but they do it anyway, why? Wouldn't Monero be a better choice?

Monero is the best option, but if Russia accept it, this will not good for the public perception because people always think Monero = criminal, so public would think Russia = criminal. Maybe Russia will use DEX or other tools to hide their Bitcoin origin.

It's good decision for Russia, they can improve their privacy using Bitcoin and the US can't just implement any rules like they want because they also use Bitcoin.

[Faisal2202]

Russia has been struggling to trade with its allies for the past few years due to US sanctions. Currently, there is a fear that US sanctions against several more Russian companies will further harm it. The restrictions on foreign banks to receive the price of export products and the impact of the sole dominance of the US dollar. They have already started using Bitcoin for commercial transactions and experts believe that this is a breakthrough step for Russia. Bitcoin transactions will increase further as an alternative to the dollar in the world.

They made this announcement some time ago and now did they make the transaction or what? I mean what they have bought and from whom is that clear or hidden? I know there is no need for them to publicize such deals and make their addresses public to everyone but I am still wondering if they even made any deals with BTC yet or what just a news?

Speaking of the finance minister, he said we will be using the BTC we mined to make deals and on the other hand they are restricting regions in Russia to mine BTC! Maybe to regulate mining in specific zones alone but is'nt this hurt the meaning of mining BTC like they will mine for their own benefit but some dude in a restricted zone can't mine it! Although this is a good deal because the adoption of BTC is all investors and traders want.

[Fiatless]

The next question is, if Russia want to trade with their allies e.g. Brazil, China, India, South Africa etc, why they didn't choose to use BRICS currency instead?

The US new president Donald Trump has threatened to impose 100% tariffs on imports from BRICS countries if they start creating and trading separate currencies as per their resolutions. Among the economically powerful countries, the remaining 7 countries, except for Russia and China, are mostly underdeveloped or developing and cannot afford to face the US threat.

https://edition.cnn.com/2024/11/30/politics/trump-brics-currency-tariff/index.html

Trump has been talking too much and I doubt if he has the power to do all. He had threatened Mexico, Canada, Ukraine, Panama, Greenland, etc. He went as far as threatening Republicans in the Congress not to support Biden's proposal. His failure to force these Republicans to turn down the bill shows that he is overestimating his powers. America might be the most powerful country in the world but they cannot fight the entire world economically. If the world comes together to fight against the overbearing pride of Trump, I don't think the US will survive.

The next question is, if Russia want to trade with their allies e.g. Brazil, China, India, South Africa etc, why they didn't choose to use BRICS currency instead?

I too don't know how to react to this. In fact my first reaction is to deny that this is true. They re strong members of BRICS and one time some months ago, I saw the BRICS currency which they say would rival the dollar. Why change to Bitcoin now? This will have no effect on the dollar. And those countries that they would trade with what's their policy on bitcoin. Well, I don't trust journalists they may have taken the words out of context.

There is nothing like the BRICS  currency. What was introduced was BRICS Pay. It is a decentralized cross-border system that allows member countries to settle trade payments with local currencies.

[kryptqnick]

As enemy is not to be underestimated, I must admit that Russia has pretty good economists and a decent finance system. They bounce back over and over again quite well after sanctions. It's unfortunate that they've turned to Bitcoin to counter Western sanctions, but it's not surprising. That's the downside of freedom and decentralization: all sorts of entities can use Bitcoin for all sorts of purposes. However, as they're using BTC mined in Russia for such trade, I suppose it might be possible to set up restrictions targeting BTC originating from mining pools in Russia.

[joniboini]

Two biggest examples are India and Saudi Arabia, they are like two-faced in policies but if they smell that BRICS won't succeed, they will quickly turn over to US. dollar again. It's easier and more beneficial for them to turn back to US. dollar, no harm with them by leaving this ambitious project that has unknow chance of success.

To be fair to them, that's just how politics is. Being two-faced is probably a basic skill nowadays. At the end of the day what matters the most is whether you get something out of a deal or not. Trying to be less reliant on USD is hard when you can't align your goal with other countries. Worse case scenario BRICS will probably end up as another market deal for most countries instead of a force to get out of US hands. I think they'll try to use crypto sooner or later so it's no surprise that Russia is the first one to allow their national businesses to do that. CMIIW.