El Salvador has proposed using cryptocurrency for trade with the BRICS alliance following Russia's recent legislative changes on crypto usage. This move is aimed at reducing reliance on the US dollar, which is the official currency of El Salvador.
Russia enacted legislation on Tuesday, allowing the use of cryptocurrency for international trade, a strategic shift designed to bypass Western sanctions. El Salvador has emerged as a potential partner in this new crypto-driven trade approach.
The BRICS nations have been focusing on de-dollarization in recent years, seeking to reduce their dependence on the US dollar and shift global economic dynamics away from Western influence. With Russia’s new legal framework, El Salvador's proposal to use cryptocurrency in BRICS trade represents a significant step in this direction.
Alexander Ilyukhin, the First Secretary of the Russian Embassy in Nicaragua, emphasized that this proposal could simplify trade dealings as the US dollar is currently the official currency in El Salvador. He also mentioned that El Salvador is facing considerable pressure from the West over this proposal. Ilyukhin also noted that El Salvador is exploring the possibility of joining the BRICS bloc but has not yet formally applied for membership.
Trade between Russia and El Salvador has grown significantly, from $4 million in 2018 to $20 million in 2020. The adoption of cryptocurrency could further boost this trade and potentially challenge the dollar's dominance in international transactions.
