Russia using Bitcoin, USDt for oil trades with China and India: Report

Russian companies have been using cryptocurrencies like Bitcoin and USDt to facilitate trade with China and India amid international sanctions, according to a Reuters report.

Russian oil companies have used crypto assets including Bitcoin (BTC) and Tether’s USDt (USDT) for international trade, Reuters reported on March 14, citing four sources with direct knowledge of the matter.

One Russian oil trader reportedly conducts tens of millions of dollars worth of monthly transactions using digital assets, according to a source who spoke on condition of anonymity due to a non-disclosure agreement.

While the Russian finance minister publicly declared in late 2024 that Russia is free to use assets like Bitcoin in foreign trade, the use of crypto in oil transactions with China and India had not been previously reported.

According to Reuters, Russia’s foreign oil trade in crypto involves intermediaries who manage offshore accounts and facilitate transactions in the buyer’s local currency. One example includes a Chinese buyer of Russian oil that pays a trading company acting as a middleman in yuan into an offshore account.

The middleman then converts payments into crypto assets and transfers it to another account, which then sends it to a third account in Russia and converts it to Russian rubles, sources said.

According to one of Reuters’ sources, crypto will likely continue to be used in Russia’s foreign oil trading regardless of whether any sanctions are in place and even if the sanctions are lifted and Russia is free to use the dollar.

“It is a convenient tool and helps run operations faster,” the report said, citing the source.

The news comes amid the Bank of Russia officially proposing to legalize cryptocurrency investments for high-net-worth individuals who have at least $1.1 million in securities and deposits.

While Russia has been increasingly open to Bitcoin, including its use in foreign trade, mainland China has maintained a cautious and restrictive approach toward cryptocurrency.

Since banning virtually all crypto transactions in 2021, authorities in mainland China have maintained a restrictive agenda on crypto, while neighboring jurisdiction Hong Kong has emerged as a global crypto hub.

Related: Indian authorities arrest alleged Garantex founder for US extradition

Despite the restrictions, mainland China has remained one of the global leaders in Bitcoin mining, raising controversy over the application of its crypto ban.

Source: Jan3

As the United States moves forward with its strategic Bitcoin reserve initiative, some industry observers believe China will not ignore Bitcoin’s growing role in the global financial landscape.

According to data from the Bitcoin technology company Jan3, the Chinese government may be holding at least 193,000 BTC.

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