Russia relies on cryptocurrencies for oil trade

In view of the ongoing sanctions by the West, Russia is breaking new ground in international payments. According to media reports, the country is increasingly using cryptocurrencies such as stable coins to maintain the export of oil despite the restrictions.

Russia is increasingly using digital assets such as Tether (USDT) to handle international payments in oil trade, reported Reuters. Payments from countries such as China, Turkey and the United Arab Emirates are now being handled in cryptocurrencies. Moscow is trying to decouple traditional financial systems such as Swift and bypass the sanctions. The increasing use of cryptocurrencies shows how digital funds gain geopolitical relevance.

Crypto payments instead of bank transactions

Since the exclusion of Russian banks from the Swift network in the course of the sanctions after the invasion of Ukraine, Russia has been looking for alternatives to handling international trading. Russian retailers are increasingly falling back on stable coins in the lucrative oil trade. This is mainly USD, which is coupled to the US dollar and offers a high level of liquidity.

According to insiders, payments are made via wallets, often with intermediate financial positions such as Dubai. From there, the amounts are converted into fiat currencies or transferred to alternative assets. The advantage: cryptocurrencies are faster, cheaper and more difficult to track than classic bank transfers. At the same time, they avoid western supervisory authorities, which is in the current situation in the current situation.

Global effects and regulatory pressure to act

The use of cryptocurrencies in oil trade by a state like Russia is a geopolitical turning point. It shows the potential of digital assets to challenge existing financial architectures. Other countries with limited access to international payments could also follow this example.

This creates a new area of ​​tension for regulatory authorities worldwide: on the one hand, stable coins offer efficiency – on the other hand, they are a risk of transparency and control. The international financial world is facing a change in which cryptocurrencies could play an increasingly central role.