BTC, ETH Rise on Russia’s Plan to Use Cryptos for Transactions

BTC, ETH Rise on Russia’s Plan to Use Cryptos for Transactions

Bitcoin (BTC), Ethereum (ETH) and other pricey cryptos have seen upward adjustments in their individual prices after Russia’s green light on adoption of digital currencies for conducting international transations.

On Monday, Cryptocurrencies valuation inched higher following the Russian government’s plan to accept digital assets for international payments amidst the flurry of sanctions. The European Union, the United States and others have been slamming Moscow with economic-crippling sanctions following Russia’s invasion of Ukraine.

According to trading data, crypto-assets market capitalisation inched higher to $1.27 trillion after gaining about 5% in the last 24 hours. Bitcoin and Ethereum prices have surged higher while other tokens and coins have also adjusted upward.

The market had plunged to $1.21 trillion on Friday as retail investors reshuffle portfolios. The oldest crypto asset. Bitcoin traded at about $31,000 while Ethereum nears $2,000. BTC had fallen to $28,000 and ETH was below $1,800, according to data from coinmarketcap. Ethereum had peaked at $4,000 early in the year before the market rout. READ: Ethereum Hits $4,000 in Fresh Cryptocurrencies Rally

Amidst heavy selldown in the cryptocurrencies market, Russia is considering allowing cryptocurrency to be used for international payments, Interfax news agency quoted a government official as saying on Friday.

“The idea of using digital currencies in transactions for international settlements is being actively discussed,” Ivan Chebeskov, head of the finance ministry’s financial policy department, was quoted as saying.

Russian officials are wrestling with how to regulate the country’s crypto market and use of digital currencies, with the finance ministry opposed to the central bank’s calls for a blanket ban.

Discussions have been ongoing for months and though the government expects cryptocurrencies to be legalised as a means of payment sooner or later, no consensus has yet been reached.

The finance ministry is discussing adding the latest proposal on international payments to an updated version of a draft law, the Vedomosti newspaper reported on Friday, citing government officials.

Allowing crypto as a means of settlement for international trade would help counter the impact of Western sanctions, which has seen Russia’s access to traditional cross-border payment mechanisms “limited,” Chebeskov said. # BTC, ETH Rise on Russia’s Plan to Use Cryptos for Transactions