El Salvador Proposes Settling Trade With Russia In Crypto

According to local media, El Salvador has proposed using crypto to settle trade with Russia. Alexander Ilyukhin, the first secretary of the Russian embassy in Nicaragua and head of the office in El Salvador, said the measure would simplify trade dealings, considering El Salvador recognizes Bitcoin as a legal tender.

Earlier this week, Russian lawmakers said crypto would be used for international trade. As per the announcement, the legislation, which will go into effect in September, will enable Moscow to avoid Western sanctions. 

Alexander Ilyukhin adds that El Salvador and many LATAM countries use the US dollar as their official currency, which is currently under sanctions in Russia. 

We have difficulties with calculations because the official currency in El Salvador is the US dollar. As an alternative, El Salvador offers to use cryptocurrency in trade operations.

Ilyukhin

Ilyukhin acknowledged El Salvador’s decision to adopt Bitcoin as its legal tender. He adds, “Within the country, any tourist can pay for any services with Bitcoin. But in our country, Bitcoin is not widespread, so we are looking for other ways to strengthen trade. The government of El Salvador is ready to continue economic cooperation with Russia.”

Geopolitically, El Salvador has maintained its independent foreign policy by refusing to side with any party involved in the Russia-Ukraine war. Earlier Ukrainian President Volodymyr Zelensky’s team hoped to secure El Salvador’s support, but Ilyukhin notes they did not succeed. 

Also Read: Bitcoin Price Reversal Alert; Is the Bull Run Over for BTC?

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