Bitcoin SHOCK: Russia backs cryptocurrency in bid to DODGE US sanctions

Sunday, December 10, 2017
By Paul Martin

RUSSIA could turn to bitcoin to boost its oil market and beat US sanctions, analysis suggests.

By REBECCA PINNINGTON
Express.co.uk
Sun, Dec 10, 2017

Major financial exchanges are set to launch bitcoin futures trading in mid-December, in a sign of the cryptocurrency’s shift to the mainstream.

The move could prompt Russia to stop using the US dollar to trade crude oil, using cryptocurrency instead.

US sanctions have hit Russia’s oil trade particularly hard, as oil is typically traded in dollars.

However using decentralised cryptocurrencies such as bitcoin could decrease dependence on the dollar and allow countries such as Russia to prosper despite the sanctions.

Stephen Brennock, an oil analyst at city broker PVM Oil, said the rise of cryptocurrencies could help countries wanting to move away from the US currency.

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.”

Moves to replace the US dollar “greenback” against oil trading have taken off in recent weeks.

In November, a $25billion yuan-rouble swap marked a potential turning point for oil trading, as Russian prime minister Dmitry Medvedev said the two countries were working on using their own currencies in more deals.

Iran, another country facing sanctions by the US, is also pursuing currency swap agreements.

China will use its own “petro-yuan” to replace the greenback in oil transactions, in a bid to minimise US influence.

While Venezuela has announced its own cryptocurrency, the “petro”, to fight US President Donald Trump’s financial blockade of the country.

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.

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