Russian Diplomat: El Salvador Proposes Settling Trade With Crypto
El Salvador has proposed using cryptocurrency as an alternative payment method for trade with Russia. The Central American nation has reportedly expressed interest in joining the BRICS bloc and may formally apply for membership within one or two years.
Ukraine-Russia Conflict Echoes in Central America
El Salvador has proposed settling trade with Russia using cryptocurrency, Alexander Ilyukhin, the First Secretary of the Russian Embassy in Nicaragua, has said. El Salvador, which has a dollarized economy, aims to overcome challenges associated with traditional financial systems.
El Salvadorâs reported crypto payment settlement proposal occurs amid the ongoing battle for influence between Russia and Ukraine. Ukrainian leader Volodymyr Zelensky has been urging El Salvador to support Kyiv as it faces Russian forces. However, the Russian diplomat emphasizes that El Salvadorâs government remains neutral and is also interested in establishing trade ties with Russia.
âWe have difficulties with calculations because the official currency in El Salvador is the US dollar. As an alternative, El Salvador offers to use cryptocurrency in trade operations,â Ilyukhin said.
When asked if using the two countriesâ respective currencies to settle trades is an option, the Russian diplomat said that while it is possible to create a bank to deal with this, such a route potentially exposes traders to Western sanctions.
Meanwhile, Ilyukhin revealed that El Salvador has expressed its desire to join the BRICS bloc, and it may formally ask to become a member in a year or two. According to the diplomat, El Salvador wants to attract foreign investment primarily from BRICS countries. He also argued that El Salvador needs to join BRICS to become independent of the U.S. and the World Bank.
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