The 16th BRICS Summit, hosted by Russia, began on October 22 in the Russian city of Kazan. Even before the start, the event gained immense popularity as there were rumors that Russia, facing tough economic sanctions due to its aggressive military actions against Ukraine, would table several aggressive proposals to create an alternative economic framework to challenge the dominance of the West in the global economy.
A recent post, published on X by Matthew Sigel, the Head of Digital Assets Research of an American investment management firm, VanEck, revealed that Russian lawmakers are pushing the idea of using Bitcoin to bypass economic sanctions. The revelation has caught the attention of the entire crypto community. Could this give a fresh boost to the Bitcoin market? Curious to know more read on!
Cryptocurrencies Enter the BRICS Summit Discussions
As expected, it was Russia who brought the topic of cryptocurrencies to the BRICS discussion table. Sigel claimed that Russian lawmakers proposed the idea of paying for imports with Bitcoin. It seems that Russia is desperate to escape from the clutches of Western sanctions.
Recently, Italian SMEs openly expressed the difficulties they face while exploring goods to Russia due to sanctions. Difficulty in processing payments was highlighted as the biggest issue they faced.
The Role of Bitcoin in Avoiding Economic Sanctions
Due to its decentralized nature, it is nearly impossible to force restrictions upon cryptos. It is possible for countries like Russia, facing economic sanctions, to overcome the majority of the issues related to payment processing by using cryptocurrencies. There is no wonder why Russians are so keen to project the idea of using BTC for global trade.
The growing interest in cryptocurrencies during the BRICS summit emphasizes their potential to change global financial dynamics.
How Bitcoin has Reacted? A Simple Chart View
On October 22, the price of Bitcoin was $67,426.94. In the last 24 hours, the market has seen a slight surge of 0.3%. Yesterday, the market dropped sharply from $67,426.94 to $66,672.04. As of now, the chart looks bullish. The bullish momentum that emerged today has helped the market to almost cover the drop suffered on the previous day. Now, the price stands at $67,416.04. In the last one-hour, the market has experienced an increase of 0.1%.
In conclusion, the idea of using BTC to bypass sanctions represents a significant shift in how cryptocurrencies are viewed on the international stage. However, it is important to see how eagerly other BRICS countries respond to the idea.
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