- El Salvador has opened potential trade negotiations with Russia to settle international trades with Bitcoin.
- Despite its alliance with the US Dollar, El Salvador is mulling to join the BRICS coalition.
El Salvador has furthered its love for cryptocurrencies with a new proposal to trade with Russia using XRP and Bitcoin (BTC). As a nation interested in overcoming the challenges associated with the traditional financial system, El Salvador believes crypto is a better payment alternative.
Meanwhile, the Central American nation’s proposal aligns with the primary goal of the BRICS group. We earlier reported that Russia has legalized using crypto payments for trade purposes. This makes it the first member of the BRICS bloc to legalize crypto use, and legislation is scheduled to pass in September.
El Salvador Seeks a Seat With BRICS Group
As an organized group, the member countries of the BRICS bloc seek to contest the dominance of the United States dollar. El Salvador has shown interest in joining the bloc, which includes member countries with some of the largest economies, including Brazil, UAE, Russia, and many others.
Reports suggest it may submit its official application in a year or two. By taking this strategic step, El Salvador intends to attract foreign investment into its region, primarily from the BRICS countries. Joining the BRICS bloc allows the government to become independent of the US and the World Bank.
Notably, this proposal to use crypto as a payment alternative comes amid an ongoing struggle between Russia and Ukraine. Ukrainian President Volodymyr Zelensky had requested support from El Salvador, asking for it to save Kyiv from its Russian oppression. Unfortunately, the appointed Russian Diplomat to Nicaragua, Alexander Ilyukhin, made it clear that El Salvador was neutral in matters associated with the war.
Furthermore, he highlighted that Central American countries are committed to engaging Russia in trade. Alexander Ilyukhin, the first secretary of the Russian embassy in Nicaragua, stated that they “are having difficulties with calculations because the official currency in El Salvador is the US dollar. As an alternative, El Salvador offers to use cryptocurrency in trading operations.”
Ilyukhin highlighted the possibility of using the respective local currencies of the two nations to conduct these cross-border trades once a bank is established for this sole purpose. However, he made it clear that such a move would expose traders to Western sanctions like the one present in the United States.
Promoting BTC Adoption
El Salvador consistently shows its commitment to crypto, especially Bitcoin. As we previously discussed on Crypto News Flash, the Nayib Bukele-led Central American country recently installed the third Bitcoin node of the year in a public school. This gives the children the chance to celebrate and also learn about Bitcoin mining.
El Salvador’s Congress has also given the green light to Bitcoin-backed bonds, marking a progressive step towards funding the ‘Bitcoin City’ project. This city is billed to operate as a financial hub that attracts global investment, using the profits generated by these bonds.
