Russia reveals it's using BITCOIN for international trade payments | Bitcoin News by CoinCorner

Transcript

Bitcoin's use as a currency is growing as two new circular economies have been established in the South American country of Surinam. Russia is now utilizing Bitcoin for international payments as a way to transact freely and avoid Western sanctions. Could this be the year of nation-state adoption, as more and more countries are in talks of establishing a strategic Bitcoin Reserve?

Welcome back to Bitcoin News, brought to you by Coin Corner. I'm your host, Alex Glass. Now, let's get straight into this week's top stories.

2024 has now come to a close, but it will go down in history as the year that Bitcoin broke $100,000 for the first time ever. To mark this huge milestone, many big names in the industry attended Michael Saylor's 100K New Year's Eve party at his home in Miami. The event, which was live-streamed, saw a lot of bullish sentiment looking forward to 2025.

Now, since breaking $100,000 and making new all-time highs, the price has stagnated somewhat, retracing by around 15% throughout the end of December. But despite this, we're still trading at around $96,000. Looking back at Bitcoin's price history at the start of each year, dating back to 2014, it's clear to see just how far Bitcoin has come despite the huge highs and lows along the way.

For our first story, it's been revealed that Russia is using Bitcoin to facilitate foreign trade. Following the introduction of Western sanctions on the country, Russian companies have now started using Bitcoin and other digital currencies in international payments as a way to transact more freely. The sanctions have complicated Russia's trade with its major partners, such as China and Turkey, as local banks are extremely cautious with Russian-related transactions to avoid scrutiny from Western regulators.

Early this month, President Vladimir Putin said that the current US administration was undermining the role of the US dollar as a reserve currency by using it for political purposes. This, he argued, is forcing many countries to turn to alternative assets. He singled out Bitcoin as an example of such assets, saying that no one in the world could regulate Bitcoin.

In the news, Bitcoin circular economies are taking root in the South American country of Surinam. Bitcoin circular economies are small-scale jurisdictions where Bitcoin is commonly used as currency amongst residents and merchants. Often, these also include Bitcoin education centers, teaching locals how to make and accept payments and the benefits of using Bitcoin as a savings technology.

This is particularly important in Surinam, as the Surinamese dollar has seen inflation rates as high as 59% in recent years, making holding the local currency a huge potential risk. Following the success of the first-ever circular Bitcoin economy, named Bitcoin Beach in El Salvador, passionate individuals in Surinam have now created two growing Bitcoin circular economies: Bitcoin San and Bitcoin Alphen Stop.

This is incredibly exciting and demonstrates the real-world use case of Bitcoin, serving as a great example of its growing adoption.

Also in the news, a Hong Kong legislator has proposed the idea of adding Bitcoin to the national reserve. A member of Hong Kong's Legislative Council pointed to the success of smaller nations, such as El Salvador and Bhutan, which recently adopted Bitcoin as a strategic asset. He also mentioned that establishing a positive stance towards the asset could attract talent and investment.

It was suggested that adding Bitcoin to the national reserve could have huge benefits if major economic powers begin to embrace Bitcoin, as they would have a first-mover advantage as more countries follow suit.

On the topic of nations looking to adopt Bitcoin, Germany's former finance minister has stated that Germany should add Bitcoin to the country's reserves. Christian Lindner said that he does not want Germany to be left behind when it comes to crypto. As the US is considering embracing Bitcoin as a Federal Reserve asset, Lindner believes Germany should potentially follow suit.

There are intense debates regarding whether the US should adopt Bitcoin as a reserve asset, especially after Senator Cynthia Lummis announced a bill that would authorize the treasury to buy 5% of the entire Bitcoin supply. Despite this, some are worried, as Bitcoin remains a volatile asset. However, Lindner has downplayed these concerns, arguing that precious metals are also volatile.

One country which appears to be taking the opposing stance towards Bitcoin is Japan. Japan has rejected a bill to implement Bitcoin as a strategic reserve asset. Japan's Prime Minister, Sharu Ishiba, stated that the government does not have enough data to evaluate the feasibility of such a reserve.

The proposal, put forward by Senator Hamada, was intended to follow the US in converting part of Japan's foreign reserves into Bitcoin. Interestingly, the government emphasized the need to ensure the stability and liquidity of its foreign exchange reserves, which they believe Bitcoin's volatility makes incompatible with current monetary systems. Although, many would argue differently.

For our final story, the Swiss Central Bank has received a proposal calling for them to hold their reserves in both gold and Bitcoin. Put forward by a group of 10 Bitcoin advocates, the initiative has 18 months to collect 100,000 signatures necessary for it to be put into a public referendum. If successful, it could be voted into federal law.

As positive as this is, the Swiss National Bank has expressed skepticism about Bitcoin previously, with the chairman saying last month he was wary about cryptocurrencies such as Bitcoin and Ether.

But unfortunately, that is all we have for you today. As always, make sure to hit that subscribe button down below, and I'll see you next week with more Bitcoin news.