El Salvador proposes crypto for trade with Russia, embassy official says

El Salvador has proposed using cryptocurrencies in trade with Russia to bypass financial restrictions imposed by sanctions, according to a Russian Embassy official.

El Salvador has suggested using Bitcoin (BTC) for trade as Russia has limited options when it comes to maintaining financial ties with the South American country due to sanctions.

In an interview with Russia’s state newspaper “Izvestia,” Alexander Ilyukhin, the first secretary of the Russian embassy in Nicaragua and head of the office in El Salvador, emphasized the difficulties of doing business with El Salvador, given that the country recognizes the US dollar as its national currency. Therefore, El Salvador suggested that cryptocurrencies could serve as an alternative, the Russian official said.

“El Salvador is the first country to officially adopt Bitcoin as legal tender. Within the country, any tourist can pay for services using Bitcoin.”

Alexander Ilyukhin

El Salvador became the first country to adopt Bitcoin as legal tender in September 2021, a decision announced by President Nayib Bukele at the Bitcoin 2021 conference in Miami. Despite the proposal, Ilyukhin noted that adopting crypto for cross-border trade is unlikely at this stage, as Russia banned crypto as legal tender in early 2021.

“[…] “Bitcoin is not widely used in our country, so we are looking for other ways to increase trade. The government of El Salvador is ready to continue economic cooperation with Russia.”

Alexander Ilyukhin

Discussion of cryptocurrency as a vehicle for trade comes amid broader efforts to streamline financial transactions between the two countries. Ilyukhin said it was vital for tourism to thrive, and suggested cryptocurrencies may be the only viable option for now.

“A more pragmatic approach for our tourists would be to pay using cryptocurrencies.”

Alexander Ilyukhin

While Russia has banned crypto payments, legal changes are on the horizon. As crypto.news previously reported, the Russian parliament recently advanced two crypto-related bills in their first readings, which could potentially allow the use of digital assets for international trade with major partners such as China, India, the UAE, and Turkey.