Following Russia’s recent legal shift regarding the asset class, El Salvador has proposed using crypto for trade with the BRICS alliance, in order to ditch the US dollar. Indeed, Russian diplomat Alexander Ilyukhin said the measure would simplify trade dealings, as the greenback is the Central American country’s official currency.
On Tuesday, Russian lawmakers shocked the globe by allowing crypto to be used for international trade. The legislation, set to go into effect in September, allows Moscow to avoid Western sanctions. Now, El Salvador has emerged as a willing trade partner.
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El Salvador Proposes Crypto for BRICS Trade as the US Dollar Takes Another Hit
Over the past several years, de-dollarization has been a focus for BRICS. The collective has sought to increase the use of its own currency, while shifting international economics away from the West. This week, the group has made a massive stride in a rather surprising way.
With Russia legalizing crypto use in international trade, El Salvador has proposed the use of crypto in trade with BRICS, and abandoning the US dollar. According to the First Secretary of the Russian Embassy in Nicaragua, Alexander Ilyukhin, the move can signal increased cooperation.
“There are difficulties in settlements between our countries since the dollar is the official currency in El Salvador,” Ilyukhin told Russian media. Moreover, he noted that El Salvador was facing “serious pressure from the West,” over the proposal.
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Additionally, the Russian diplomat said the country was interested in joining the bloc. Specifically, he said they were “exploring the possibility of joining BRICS,” in the near future. However, he noted they have not yet applied for membership.
The two nations’ trade eclipsed $4 million in 2018, a year later it had doubled. The growth only continued, reaching $20 million in 2020. That could continue to grow with increased trade. Considering El Salvador’s connection to Bitcoin and crypto, the asset class could facilitate increased trade between both sides. Therefore, taking another massive hit to the dollar.