El Salvador Proposes Cryptocurrency as Payment Option Amid Russia Sanctions

IconCryptoNewsTerminal Staff29 Jul, 2024

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El Salvador Proposes Cryptocurrency as Payment Option Amid Russia Sanctions

El Salvador has reportedly proposed using cryptocurrency as an alternative to fiat currencies for payments with Russia amid economic sanctions. "El Salvador's official currency is the US dollar, which creates difficulties in trade settlements with Russia," said Alexander Ilyukhin, the charge d'affaires of the Russian Embassy in Nicaragua and head of the office in El Salvador. "In this regard, El Salvador has proposed using cryptocurrency as an alternative." The proposal comes as Russia faces severe economic sanctions from Western countries in response to its invasion of Ukraine. The sanctions have led to a sharp decline in the value of the ruble and made it difficult for Russian businesses to trade with other countries. El Salvador adopted Bitcoin as legal tender last year, and the country has since become a hub for cryptocurrency adoption. The government has installed Bitcoin ATMs and is working on developing a national cryptocurrency exchange. If El Salvador's proposal is accepted, it would be the first time that a country has used cryptocurrency to settle international payments with Russia. The move could have significant implications for the future of cryptocurrency adoption around the world.

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