BRICS Summit 2022: Could Bitcoin Help Russia Bypass Western Sanctions?

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

The 16th BRICS Summit, hosted by Russia, commenced on October 22 in the Russian city of Kazan. Ahead of the event, rumors circulated that Russia, facing economic sanctions due to its military actions in Ukraine, would propose measures to create an alternative economic framework and challenge Western dominance in the global economy.

One recent post, published on X by Matthew Sigel, Head of Digital Assets Research at American investment management firm VanEck, revealed that Russian lawmakers are pushing the idea of using Bitcoin to bypass economic sanctions, a development that has captured the attention of the crypto community. Could this give a fresh boost to the Bitcoin market? Read on to find out.

Cryptocurrencies Enter the BRICS Summit Discussions

As expected, it was Russia that brought the topic of cryptocurrencies to the BRICS discussion table. According to Sigel, Russian lawmakers proposed the idea of paying for imports with Bitcoin, in an apparent bid to escape the net 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.

As the BRICS Summit Kicks Off, Top Lawmakes Are Pushing the Idea that Russian Miners Could Sell Their #Bitcoin to International Buyers, Who Would Use BTC and Other Crypto to Pay for Imports, Effectively Bypassing Western Sanctions.? pic.twitter.com/AyI8Km64Y1

The Role of Bitcoin in Avoiding Economic Sanctions

Due to their decentralized nature, cryptocurrencies are almost impossible to restrict. For countries like Russia, facing economic sanctions, using cryptocurrencies could overcome the majority of the issues related to payment processing. It is no wonder that the Russians are so keen to project the idea of using BTC for global trade.

The growing interest in cryptocurrencies during the BRICS summit highlights their potential to change global financial dynamics.

How Bitcoin has Reacted? A Simple Chart View

On October 22, the price of Bitcoin stood at $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 marks a significant shift in how cryptocurrencies are viewed on the international stage. However, it remains to be seen how enthusiastically other BRICS countries engage with the idea.

Stay tuned to Coinpedia for more such interesting macroeconomic stories!

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