Russia, a country rich in natural resources, may resort to Bitcoin mining in order to alleviate the consequences of U.S sanctions.
According to Russia’s Deputy Energy Minister Evgeny Grabchak, the legal vacuum in Bitcoin mining must be filled.
He stated that it would be more effective to pick mining areas for miners regionally rather than at the federal level and that this should be managed by regional development plans rather than by the federal government.
“The legal vacuum makes it difficult to regulate this area and set clear rules of the game. This legal vacuum needs to be [eliminated] as soon as possible. If we want somehow to get along with this activity, and we have no other options in the current reality, we must introduce legal regulation, adding the concept of mining to the regulatory framework,” Grabchak stated.
Russia Accepting Bitcoin for Payment of Energy Exports
Russian State Duma member and Energy Committee chairman Pavel Zavalny also offered Bitcoin as a payment alternative for energy exports to “friendly nations” in a recent interview.
During a news conference on Thursday, the chairman of a Duma committee suggested that Bitcoin may be one of the payment options that Russia could accept in exchange for oil and other commodities.
Russia has been sanctioned, but it is still able to sell gas to the West in exchange for rubles and gold, and to “friendly” nations such as China or Turkey in exchange for either national currency or Bitcoin, according to Duma deputy Pavel Zavalny.
In his remarks, Zavalny, head of the Duma committee on energy, said that if people want to purchase, they should pay in hard money, which is equivalent to gold, or pay in whichever way is most comfortable for Russia(rubles or gold).
In addition, “the set of currencies might be varied, and this is standard procedure, [so] you can also trade Bitcoin,” he said further.
It is possible that Zavalny’s comments were the catalyst for a significant increase in the price of Bitcoin during the previous week.
Russia: ’Unfriendly Nations Must Trade in Rubles by April 1 or Have Gas Exports Halted’
According to Russian President Vladimir Putin, Russia will stop supplying gas to purchasers from “unfriendly” countries unless they agree to make payments in rubles starting on April 1.
“To buy Russian gas, they need to open ruble accounts in Russian banks,” Putin said in a speech Thursday. “It is from those accounts that gas will be paid for starting April 1st. If such payments aren’t made, we will consider this a failure by the client to comply with its obligations.”
He signed a directive forcing nations that have placed sanctions on Moscow to create Russian bank accounts in order to pay for natural gas imported into their countries.
For gas payments, Russian banks will take foreign currencies and convert them into rubles at their discretion.
Bitcoin was Built for ”The Currency Wars”
This is the latest strike in a long-running dispute with Europe over energy sales, challenges to dollar hegemony, and history in the making intertwined with Bitcoin.
What we are experiencing and witnessing today is what may be referred to as ”The Currency Wars” in the future.
It makes sense for a nation like Russia to sell its most desired exports in a fixed supply asset(Bitcoin) which happens to be the hardest money ever created or discovered.
This allows Russia to benefit as the U.S and E.U struggle to handle borderline hyperinflation with regional de-dollarization, and a possible end to the petro-dollar system.
Bitcoin is on nearly every nation or region’s radar. The signal is spreading and the world needs an incorruptable money separate from the state.
The blowback from the Weaponization of SWIFT has left the world reserve currency in a “Fiat Value Crisis”.
Get your popcorn ready, your sats off exchanges and locked down in cold storage, ”The Currency Wars” are here. Bitcoin was built for this.