Russia is open to accepting bitcoin for its natural resources exports, the chairman of the countryâs Congressional energy committee, Pavel Zavalny, said in a press conference on Thursday.
Zavalny explained that Russia is open to accepting different currencies for its exports, beginning with natural gas, depending on the buyerâs preferred method of payment. However, the chairman said terms will depend on the importing countryâs foreign relations status with Russia.
âWhen it comes to our âfriendlyâ countries, like China or Turkey, which donât pressure us, then we have been offering them for a while to switch payments to national currencies, like rubles and yuan,â Zavalny said during the press conference. âWith Turkey, it can be lira and rubles. So there can be a variety of currencies, and thatâs a standard practice. If they want bitcoin, we will trade in bitcoin.â
Zavalnyâs statement comes on the heels of President Vladimir Putinâs comments on Wednesday demanding that âunfriendlyâ countries pay for Russian gas in rubles. Putinâs message was clear, but it is unclear whether Russia can unilaterally change existing contracts agreed upon in euros.
The State Dumaâs energy committee chair echoed Putinâs decision while adding that the country should also accept gold.
âWhen we exchange with Western countriesâŠthey should pay in hard money,â Zavalny said. âAnd hard money is gold, or they must pay in currencies which are convenient for us, and that is the national currency â ruble. That relates to our âunfriendlyâ countries.â
Russia being open to accepting bitcoin shift the tide as Putin last year had dismissed the possibility in an interview at the Russian Energy Week event in Moscow.
âI believe that it has value,â Putin said at the time, referring to Bitcoin. âBut I donât believe it can be used in the oil trade.â
The current size of the Bitcoin market and its liquidity do pose questions as to whether the peer-to-peer currency could be used widely by countries in international trade at this moment.
However, by being open to the possibility and eventually conducting pilot trades with interested parties, Russia could set the stage for an upcoming trend where nations choose to transact in the stateless, global monetary system.
â With assistance by Anastasia Iurciac.