The conflict in Ukraine is becoming into a financial conflict. While Iran has recently made it permissible to pay for imports with bitcoins, China has just stated that it will pay for Russian gas in Yuan.
Dollars? No thank you.
Gazprom, a major supplier of energy in Russia, and China have agreed that payments for gas deliveries will be made in both yuan and roubles. The US dollar, which still accounts for 41% of international payments and 59% of reserves of foreign exchange, is to be avoided.
⚡️Putin: Trust in the dollar has gone pic.twitter.com/0CHllttum0— 🇷🇺Jacob🇷🇺Charite🇷🇺 (@jaccocharite) September 7, 2022
- “The new payment mechanism is a mutually beneficial, timely, reliable and convenient solution ,” Gazprom CEO Alexei Miller said following a videoconference meeting with the CEO of Chinese oil group CNPC.
Everything tells us that the gas that Europe no longer wants will end up being consumed in Asia, thus this decision will have major ramifications. China’s imports of Russian gas have already risen by 60% over the previous year. About 10 billion m3 total. compared to the 72 billion m3 shipped to Europe, a 42% decrease.
The decision of the central bank and the Russian Ministry of Finance to accept cryptocurrencies for international transactions might be contrasted with this abandoning of the dollar. However, the Ministry of Finance favors promoting a stablecoin-based global payment system over bitcoin.
The deputy finance minister, Alexey Moiseev, will put out a legal framework in this direction, according to the Russian state news agency TASS. Stablecoins can be linked to a well acknowledged instrument, like gold, whose value is obvious and understandable to all, he said.
Therefore, China and Russia want to profit from their vast gold reserves. However, because bitcoin is both gold and a global payment network already connected to all of the world’s currencies, it is more useful. two in one
But let’s wager that Moscow will allow bitcoin trading if some nations want it. The Tasnim news agency also adds that its ally Iran, which has little gold, has just made it permissible to pay for imports using bitcoin and other cryptocurrencies.
Industry Minister Fatemi Amin introduced a legal framework for the provision of electricity for bitcoin mining and its usage for foreign trade in a press conference after a car industry show in Tehran on Sunday.
Imports can now be made in cryptocurrencies instead of US dollars or euros, according to the agreement between the Ministry of Industry and the Central Bank of Iran.
According to Tasnim, the first import order for $10 million that was paid for in cryptocurrencies was placed on August 9. No information was provided by the head of Iran’s Trade Promotion Organization regarding the imported goods, the country involved, or the cryptocurrency used. However, the information we have leads to bitcoin.