Starting with the topic, it’s a crucial step to know what Bitcoin is? Well, BTC, an abbreviation for Bitcoin, is digital money used to transfer money on the internet without being owned or controlled by any bank, it is decentralized. However, these transactions have nothing to do with the bank, they are recorded on the Blockchain, which acts as a public ledger keeping a record of the transactions. People from all over the world can transfer their money without any barriers. Let’s know the answer to your question “Does Russia Accept Bitcoin?”.
Although Bitcoin helps you transfer your money digitally in buying or selling things, some countries consider using Bitcoin illegal; Egypt and China.
As far as Russia is concerned, Russia has maintained to be the world’s largest supplier of gas and second-largest exporter of oil. Russia has recently allowed the use of Bitcoin for exporting oil and gas. Hence, bitcoins are acceptable for international transactions.
Laws Made To Allow Bitcoins For Friendly Countries
Pavel Zavalniy, the deputy of the famous United Russia party and also the president of the Russian gas society, says that the friendly countries of Russia can pay for oil and gas in cryptocurrency, Bitcoin, or in the local currencies. He has given a lot of choices to friendly countries, he has allowed China to pay in Yuan or Roubles or even Bitcoins. In the same way, Turkey is also allowed to pay in Lira, Roubles, or Bitcoin.
Laws For Unfriendly Countries
Later, Mr. Vladimir Putin, The Russian politician, and the former prime minister said that the unfriendly countries of Russia should pay for gas-only with Russian Roubles. This change of policy will help in increasing the value of the Russian Roubles as it has already decreased by 20% this year increasing the cost of living.
Why Is Russia Accepting Bitcoin Now?
In February 2022, When Russia invaded Ukraine, the western Governments imposed sanctions on the Russian economy. They froze the foreign reserves of the Russian banks that were held abroad and different other western oil major companies took advantage of it. The companies include shell and British petroleum.
These sanctions caused a sharp decrease in the Russian Rouble value as the Russian traders were unable to sell their products abroad and vice versa. Where it took 81 roubles to buy a dollar before the invasion, it then took 151 roubles to buy a dollar after the invasion. Diversifying into different local currencies and bitcoins, will reduce Russia’s dependency on US Dollars and euros, the currencies of their Unfriendly states.
Will Russia continue accepting Bitcoin in the Future?
Well, this is unpredictable. Firstly, Bitcoin is a digital currency and nonreal money. Therefore, when the liquidity of Bitcoin is compared with the sales of Russian oil and gas, it’s impractical to use Bitcoin. Moreover, Bitcoins are unstable.
Russia’s oil and gas market is extremely big and even the slightest drop-down in the cryptocurrency can give them a huge loss.
The Western Government
The Western Governments can see this Russia’s adoption of cryptocurrency as a risk to their economy and hence, they can also build up their little stockpile and reverse the whole situation by bringing the value of cryptocurrency down.
According to Ksenia Yudaeva, the first deputy governor of the Central Bank of Russia, Using cryptocurrency can be seen as a risk to the Russian economy,
Conclusion
We all know that Russia has a huge oil and gas market. Well, the Russian government has taken a big risk by allowing cryptocurrencies for exchange in international markets as a little fluctuation in the price of bitcoins can lead to extreme results. On the other hand, it is predicted that Russia may not accept bitcoins in the future because it’s seen as a big risk.
FAQs
Q. How to use Bitcoin or how does it work?
No one on the earth controls emails, we can send or even receive emails from each other without anyone controlling it. Similarly, no one controls Bitcoin, the users of bitcoins own and control it.
Q. Do people use Bitcoin now?
There are a growing number of people and organizations using bitcoins. Existing bitcoins have a value of more than a hundred billion dollars.
Q. Is it difficult to make payments on bitcoins?
Making payments with Bitcoins is easier than transferring money through credit cards. It is like a mobile application where you have a Bitcoin wallet and you just have to type the receiver’s address and payment amount to send money.
Q. How can we purchase bitcoins?
Purchasing bitcoins is a piece of cake, you can easily purchase bitcoins with the help of credit cards or even with your e-wallets. Local bitcoins or some online exchange centers also sell them. Other than that, Bitcoin.com also gives you a list of these exchange centers.
Q. How can we sell Bitcoins?
We can sell Bitcoins just as we purchase them. You can sell it through an online exchange or Bitcoin ATMs and even to people living nearby.
