Alexander Ilyukhinfirst secretary of the Embassy of Russia in Nicaragua, stated that El Salvador Wants to Trade with Your Country Using BitcoinThis is because the US dollar is the official currency of the Central American country, but cannot be used by Russia due to US sanctions.
Although Russia does not have an embassy in El Salvador, Ilyukhin emphasizes that the talks are conducted through the Nicaraguan embassy. In any case, it is emphasized that the countries have maintained diplomatic relations for more than thirty years.
Another striking point was the talks between Vladimir Zelensky, President of Ukraine, with El Salvador, in an attempt to gain support from Nayib Bukele. However, the Russian diplomat claims that they are not successful.
El Salvador Wants to Trade with Russia, But Using Bitcoin
According to data from Alexander Ilyukhin, the trade volume between Russia and El Salvador in 2020 exceeded $100 million. the number dropped after the start of sanctions imposed by the US.
While Russian exports remained at the same level, imports fell to almost zero. Asked about a change in the currency used, the Russian diplomat noted that El Salvador proposed the use of Bitcoin in trade between the two countries.
“We have difficulty with the calculations, because the official currency of El Salvador is the US dollar. As an alternative, El Salvador proposes to use cryptocurrency in its business operations.”
“El Salvador is the first country to officially accept Bitcoin as a means of payment. Within the country, any tourist can pay for any service with bitcoins”according to Ilyukhin. “But Bitcoin is not yet so widespread in our country, so we are looking for other ways to strengthen trade. The government of El Salvador is willing to continue economic cooperation with Russia.”
On the other hand, Russia suggested that El Salvador establish a bank that would accept currencies other than the dollar and Bitcoin, such as the Chinese yuan, the Indian rupee, and the Russian ruble. In any case, keep in mind that the country might not be interested in this, as it might be under pressure from the US and European countries.
El Salvador would be interested in joining BRICS, Russian diplomat says
Although he claims that the US sees Central America as “its backyard,” Alexander Ilyukhin Izvestia say El Salvador showed interest in participating BRICSan economic bloc led by Brazil, Russia, India, China and South Africa.
“Certainly. They are very interested. They are very attracted to the BRICS and are exploring the possibility of joining them.”said Ilyukhin. “It is possible that El Salvador could apply to join the BRICS in the next year or two.”
The diplomat was also asked if Russia would be interested in establishing a military base on Salvadoran soil. However, he ruled out this possibility, stating that they are already well positioned in Cuba and Nicaragua.
“We don’t have aggressive plans, we have other deterrents. We don’t have to be close to the United States for that”concluded.
Regarding tourism in El Salvador, Ilyukhin advised Russians to use Bitcoin as a means of payment.
Finally, it is worth remembering that the Central Bank of Russia itself began to encourage the use of cryptocurrencies in international trade to circumvent sanctions. Therefore, this possible alliance between Russia and Salvador could serve as a model for other countries interested in negotiating with Russia.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
