Topic: Russian head of the committee on Energy about selling oil and gas in Bitcoin (Read 825 times)

Even i pointed out these views here, these sort of the legal struggle going on globally and if countries are overcoming the sanctions with a decentralized currency, what will be the decisions they are going to make when they pass the law on cryptocurrencies and how they are going to handle them is a slippery slope situation. Hopefully we will not see any drastic measures being taken against the entire space.

Would that even work? I mean I get that there is a sanction to Russia but as far as I know it is towards Russia in general and not just against Ruble, which means that you could sell for ruble, dollars, euro, yuan, or bitcoin and it would still be sanctioned. Makes no sense to add in bitcoin option as a savior in that list, since it wouldn't change much. Sure it is great to transact these deals in crypto because it would be cheaper and faster.

After all, we are talking about billions of dollars worth of market and each of those transactions are a big deal, crypto would make it easier. But at the end of the day it would not save the Russian economy.

“We have been proposing to China for a long time to switch to settlements in national currencies for rubles and yuan. With Turkey, it will be lira and rubles. The currencies used can be different and it's a normal practice. If it's Bitcoin, then it's Bitcoin,” the deputy said during a press conference organized by the Rossiya Segodnya news agency.

Read more on RBC:
https://www.rbc.ru/crypto/news/623c75db9a79474e05533924

This is a video with the right phrase for the news.
https://mobile.twitter.com/gegelsmr2/status/1506999204295725060

English is very formal. The same phrase in Russian can mean nothing
"Бyдyт биткoины - бyдeм биткoинaми тopгoвaть"
As a native speaker of Russian, I will write you a simple example: If there is a brick, we will build a house. It’s just not clear whether a brick will ever appear (most likely never) and maybe I’ll build not a house but a barn, and maybe it will be in another country, since the place for construction is not indicated.
Such phrases should not be taken formally, meaning that maybe someday, but probably never.

There is no word yet on whether Russia will accept bitcoin payments for its oil purchases, but i think this is why bitcoin is up slightly today and bitcoin is approaching 45k.

Oil and gas prices rise is not their decision. The US stopped buying oil from Russia and banned other countries from buying oil from Russia, causing a shortage of the world's oil supply which sent oil prices soaring.

A great news from Russia IMO. and i see that there will be a new improvement in the market because of that reason. But i hope they lesser the price of oil and gas because to be honest its really too high compared few months ago. by the way what happen to their digital currency (Ruble) why they fell in bitcoin?.

This would benefit them because their fiat (Ruble ) has dropped in value.

With Bitcoin, they can still sell their oil at a competitive price, and that is also to prevent the economic sanctions implemented unto them from the countries that condemn their actions. As they make this smart move, this would also give a very big and positive impact to the crypto market.

Most of the world population goes by those rules. They usually end up as laws.


There are a lot of wonderful experiments that didn't get world wide acceptance/traction for whatever odd reasons. And I will not talk (only) about (some) altcoins, I would (also) talk about better ways to store data (much better than DVD), for example. The world goes on and most will not miss that, but for some.. it's a loss.

You do have a good point about proving it works as designed, although imho that was already proven.
Can Russia trigger real adoption? I doubt it. Just look how the "adoption" went in China. They toyed Bitcoin for a while, then kicked it out and started their centralized coin. It has proven to us the Bitcoin resilience, but for the average Chen it's a loss.
And the western banking sector (and it friends) just waits the perfect opportunity/reason to ban their main competitor. And then.. who will adopt Bitcoin?


It's a free world (actually network), that's the beauty of it. And protesting won't help; I don't expect Russian government care at all.
But please allow me still be concerned, OK?


I find Bitcoin now at a thin balance between the experimental status and worldwide adoption. I fear that the critical mass (user base) is not yet achieved and although we both have similar goal for Bitcoin, I'd prefer to "play safe" a little more.
What we have now with Bitcoin is a mix of hope and speculation. Bitcoin's actual value will come after the critical mass is reached and we can go on with or without the current financial sector.


I don't think that you really want that. It would be an immense setback.

The situation is a bit awkward if we take into account what Bitcoin is and the fact that everyone can use it in any way they want. A man who will pay with BTC coffee in a cafe, someone else who will buy something illegal on the black market, and a country that wants to avoid sanctions in this way benefit from using Bitcoin.

The problem (although some will not call it that) arises when someone interprets Bitcoin as a means of avoiding sanctions and accordingly wants to take appropriate measures to prevent it. It only adds fuel to the fire and benefits those who support their anti-Bitcoin agendas, and they use it to put pressure on their governments to pass laws restricting the use of Bitcoin in public.

Turkey banned Bitcoin as a means of payment 1 year ago, and yesterday I read that Thailand will do the same, and the only question is which country will do it next. Therefore, linking Bitcoin to Russia and avoiding sanctions is not something that brings us positive public opinion - although there is absolutely nothing anyone can do about it - if Russia wants to use Bitcoin, it will use it like any other blacklisted country like Iran or North Korea.

IF it ends up as a "underground-only" cryptocurrency, "according to" a cabal of entities who make the "rules", because a scantioned nation-state used it? Will it be "our" loss if it proves the technology works as designed? Plus a nation-state truly using it will not make Bitcoin "underground-only", it could start real adoption.


I respect your opinion.

Are you saying the community should protest, and tell Russia not to use Bitcoin? But what would be the point of Bitcoin? What would then be its main value-proposition?


It will for me, it might for Putin and other sanctioned countries, and for the Heroine dealers in the dark markets.

If Bitcoin ends up as underground-only currency, it will be everybody's loss.
Sorry, I find your view in this a bit limited (or maybe I just don't understand it), and repeating that bitcoin is permissionless medium of exchange won't change that.
For example, an asset only in the underground markets - no matter the price recovers or not - won't really be seen as a store of value.

Bitcoin is a permissionless, censorship-resistant cryptocurrency, that can be used as a Medium of Exchange, and as form of self-sovereign Store of Value. If they take Bitcoin as a ground-breaking technology, OK. If they take it as a mere "toy" they can use and throw away, OK but will be laughable, their choice.


It will be their loss in my opinion, and Bitcoin will crawl into the systems that the legacy "legal entities" will not serve, and make those markets more efficient. The price might crash, but I'm confident it will surge again.

The emphasis is more on Ruble and Gold but if they have to then they will also consider Bitcoin as a mode of payment that what it meant. We need to wait and watch in this situation. It is still not certain that Russia will accept Bitcoin. In the past too Gold was preferred by oil producing countries which led to the Gulf war at that time Bitcoin was not invented. If that happens then it will be a great news for Bitcoin.  

But at least this is good news for bitcoin and the war will prompt countries to re-evaluate their currency dependence.
and a carefully designed global digital payment system can improve the settlement of international transactions while reducing the risk of money laundering and corruption, whether true or not what I say is bound to happen in the future. And Russia will be an example, although I don't know the truth yet, but bitcoin will be a solution for them to stay afloat.
I don't judge because Russia invaded Ukraine and received a lot of harsh sanctions, and I mainly think that bitcoin is any solution and I'm glad the price of bitcoin is currently on the rise.

I don't have any proof for obvious reasons but bitcoin payments have already happening for at least 3 years, this statement may only be paving the way to making it official and then grow it in size, since so far only a small percentage of trades are taking place using bitcoin.

Basically the reasons I have are:
1. The eastern block has been moving away from US dollar for some time now. The challenge has always been the "replacement" and there are multiple candidates. There is Mir (payment system) from Russia, there has been a lot of agreement between Russia and China over the past couple of years for other payment systems too. There has also been discussions over using bitcoin and their own centralized altcoin created and controlled by the governments (eg. eCNY).

2. Cryptocurrencies have been discussed among Shanghai Cooperation Organization (SCO) members, mainly for regulation but also bitcoin was considered as a means of payment.

3. Iran, a member of SCO and under about 3500 sanctions LOL, has been using bitcoin for import/exports for at least 3 years (1.5 year was official). A portion of those trades are with Russia.

For Russia and China, Bitcoin is only a toy they can use and throw away. If Russia will indeed sell gas for Bitcoin to whatever sanctioned countries, we may get back to "bitcoin is illegal money" and businesses/individuals getting restricted in using it.
I do understand your point, this kind of use would show how powerful Bitcoin actually is. But if then Bitcoin will no longer be accepted in the western world... it will be pretty bad, and not only for the price.
For "underground" use there are the privacy coins. But I would not be happy with Bitcoin used again only by (some of) us. I want to see Bitcoin accepted literally everywhere, by every merchant/business. The more legit the better.

The news in my country are that Russia is going to be accepting rubles for selling oil and gas to the hostile countries(USA,Canada,UK,Austrslia and most of European countries).There aren't any news about Russia accepting cryptocurrency payments for selling oild and gas to the friendly or neutral countries.
Actually,there aren't any indications that the Russian oil and gas companies replaced dollars and euro with rubles in the recent days.
All the news about Russia and Bitcoin are just a big speculation.I would never believe that Russia would turn into a Bitcoin friendly country.Even if that happens,the western world will impose sanctions over the cryptocurrency industry and the BTC price would collapse.

No ser, it is truly cheered by those who care about Bitcoin as a permissionless, censorship-resistant protocol with an underlying nature that can weaken political strongholds. Those who care only about the price are afraid that that would happen, because "Russia Bad will Bitcoin Bad Price Crash".

I found a video where someone narrowed down the relevant part of the declarations (which of course may have trimmed part of the context) to just over a minute:
https://www.youtube.com/watch?v=VK75tTBvo60

Perhaps someone native to the language can assess whether the context of potentially accepting bitcoin is delimited to "friends", or not.

I tried to use the auto translated subtitles on Youtube (on the video select Settings -> Subtitles -> Auto Translate -> Russian (auto generated to English)), but the result is not good enough to make out the proper context.

That is exactly why they know what they are doing is impossible thus they are trying to do things like :

1. Give discounted price to India
2. Threaten Ukraine by nuclear weapons
3. Asking ukranian government for neutrality for the pipelines passing through the land

Am preety sure they would be considering setting the NORD back up and at the same time this all works only if they decide to quit it all.

Payment in Bitcoins is handled for sure but it's going to be definitely trackable as well, which the government right now not looking for am sure.

Whether it's true or not, bitcoin is always an alternative choice when all payment methods are inaccessible. That's the main thing why Bitcoin is absolutely unavoidable if oil and gas accepts other payment alternatives. There are only 2 sides, namely negative and positive, besides that there will be pros and cons among people who tend to secure their assets either to Bitcoin or the like. What we do is when it is confirmed that there is a Bitcoin transaction for gas and oil then the amount and value will affect the movement in the bitcoin market.

This news isn't confirmed. Someone from Russia needs to give the clear translation. In some news it is mentioned that if some country prefer to pay in bitcoin, then Russia is ready for that. If this is a rumour then we can see the market getting disturbed in the coming days. The price crossing $44k is connected with the video interview going viral on Twitter. One of the article which I read gave this as the interview statement meaning from Chairman of the Committee on Energy in Russia, Pavel Zavalny.

This can't be true, because of a very simple reason, Russia currently wants its currency to recover a bit, after the recent economic sanctions it's currency is bleeding, the only way to strengthen your currency is by increasing exports in your own currency, or receiving payments in other foreign currencies in which you are due for repayments, economically it would make zero sense for them to receive anything in bitcoin because when you go to an open market to sell bitcoins, amount might be so high that you would end up paying huge sllippages on that moreover selling it to your own people would mean reducing the Money supply from their hands. So I don't really believe this is an official video.

We must go through a stage where the dollar is exceeded in oil payments before we move to an alternative to bitcoin, gold to replace the dollar in conflict areas or those on which America is imposing sanctions.

• If we make a quick comparison or vote between gold and bitcoin, we will find that gold will win quickly.
  
• Bitcoin is not the ideal alternative at the present time.
• It would be ideal if the market capacity of Bitcoin exceeds 10 trillion dollars.

Using gold as an alternative to the dollar in oil is the appropriate solution, but countries like to strengthen their local currency and print more money.
it will be a lot of chaos, the adoption of Bitcoin will increase this chaos.

This development is a sweet but bitter news. it's a good news for those that only care about the profit or money aspects of bitcoin. This news affects the reputation of bitcoin because it would be generally perceived by most people as an instrument used by autocrats and war criminals to invade sanctions. I am sure this was not the original intent of the creators of bitcoin. If this comes into effect, the enemies of Russia would automatically become bitcoin's foes.

While the foreign reserve sanctions have brought to light the risks of holding reserves in foreign fiat currencies I don't think Bitcoin would necessarily benefit from Russian influence at this point. Bitcoin is more tolerated than welcomed as is, a close association to the Russian economy would probably make Bitcoin a currency non grata for good.

Either way it seems unlikely to happen as the Russian government has more interest in trying to restabilize the Ruble by increasing demand for it. Things would maybe look differently if Russia had more vested interest in Bitcoin but given their rather hostile stance in the past they are unlikely to benefit from rising Bitcoin prices; hence they are more likely to focus on the Ruble instead. Especially since denominating export prices in Ruble would enable them to nudge the exchange rate towards a more favourable direction.

If this is somehow true, then it is time full your bags now as there could be a massive pump. I was seeing my bitcoins and the price really went up. There are lots of positive news came lately and it is a good sign. Hope there could b more of this, and maybe not only Russian oil but also other products too.

Yes, for those that care about the surge in the price of Bitcoin this is good news but in the season when this decision was made by the Russian to escape the US sanction while their Senate is already feeling discontent with the decision of the El Salvador government of signing Bitcoin as legal tender this could lead to something else.

This news is cheered by those who care only about the price (which has indeed started going up), but I fear it will give even more ammo to Bitcoin's opponents.

And BTW, the whole news as I've read it, tells that they consider asking Bitcoin from the friendly countries and rubles or gold from the others.
However, changing the means of payment currency is not allowed by most of the existing long term contracts, so this looks to me like pushing the countries take the (not so easy) decision of finding better providers than Russia.

It seems to be news from the official Russian media, but the emphasis is on the following "Russia considering energy sales to 'friendly' nations in Bitcoin", and if we know that only 5 countries supported Russia in what it is currently doing, and 35 were not for or against - then we need to ask ourselves who will pay for oil and gas with Bitcoin? A nice society has gathered, but at least we know where politics is rotten and where we can expect some new dictator like this one who is currently in the spotlight.

There’s an ongoing trending topic on tweeter about the video interview of RF head committee on Energy that they are considering assets like Bitcoin as payment for there oil and gas. The video is in Russian Language and still needs to be verify by Russian native speaker. This news maybe ignite the recent fluctuations on Bitcoin right now.

Anyone here can verify and translate the content of the video on source link: https://mobile.twitter.com/BitcoinComfy/status/1506982883076063236?s=20&t=wOZOKzpCqJ9SjG_J64-oaQ