This move could enable Russia to give up using the US dollar to trade crude oil, using crypto currencies instead. The US sanctions have damaged Russia’s oil trade in a devastating fashion, as oil is usually traded in the US dollar format.
This is where cryptocurrencies such as the bitcoin could lessen the dependency on the dollar, which will allow countries such as Russia to grow despite these sanctions.
In a research note seen by CNBC, he said: “The advent of cryptocurrencies represents a fresh catalyst for commodity-producing countries wishing to abandon the dollar as a means of payment for oil.”
These actions to replace the US dollar “greenback” against oil trading have taken place in the past couple of weeks.
Last month (November 2017) , a $25billion yuan-rouble swap marked a prospective turning point within the oil trading business. This is because the Russian Prime Minster Dmirty Medvedev said the two nations were working hard on been able to using their personal currencies in more deals.
Financial commentator Jim Rogers predicted the change in September, telling RT: “Many people do not like using US dollars because if the US gets angry at you, they just set enormous pressure on you that can even get you out of business.
“China, Russia, and other countries understand this, and they are trying to move world trade and world finance away from that.”
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