- Russia is using Bitcoin, Ethereum, and USDT in oil trade.
- China and India are major partners in this $192B trade.
- Crypto helps Russia bypass Western financial restrictions.
As Western sanctions tighten, Russia has increasingly turned to cryptocurrencies like Bitcoin ($ BTC ), Ethereum ($ ETH ), and Tether ($USDT) to facilitate its massive oil trade with China and India. The $192 billion trade between these nations has seen a rise in crypto transactions, enabling Russia to bypass traditional financial restrictions imposed by the West.
Why is Russia Using Crypto?
With global sanctions restricting access to SWIFT and traditional banking systems, Russia has sought alternative payment methods to continue its oil exports. Cryptocurrencies provide a decentralized and censorship-resistant solution, allowing transactions without the need for intermediaries.
Tether ($USDT), a stablecoin pegged to the US dollar, has been a popular choice due to its price stability. Meanwhile, Bitcoin and Ethereum are also being utilized for their liquidity and widespread acceptance in global markets.
Impact on Global Trade
China and India, two of the world’s largest energy consumers, have maintained strong trade ties with Russia despite international pressures. By using crypto, Russia ensures seamless transactions while reducing reliance on the US dollar. This shift could accelerate broader adoption of digital assets in global trade, especially among nations facing economic sanctions.
Challenges and Future Outlook
While crypto offers Russia a way to navigate financial barriers, it also comes with risks. Regulatory scrutiny is increasing, and price volatility in digital assets could affect trade efficiency. Additionally, governments may introduce new measures to curb such transactions. However, as Blockchain -based finance evolves, more countries might explore similar approaches to bypass economic restrictions.
