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Russian lawmaker suggested Bitcoin as a payment method for energy exports

Updated: Aug 31, 2024
Published: Mar 24, 2022
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According to Russian energy official Pavel Zavalny, Russia is willing to accept Bitcoin payments for energy exports.

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Russia wants to sell gas for Bitcoin

Pavel Zavalny, who heads the State Duma's energy committee, held a press conference with the Russian government news channel Russia Today on March 24. In it, he tried to explain how Russia would get away from selling its natural gas for dollars and euros and suggested that the country could accept Bitcoin in exchange for energy exports.

Zavalny's appearance comes on the heels of Putin's announcement yesterday that Russia would require "unfriendly countries," namely the United States and the European Union, to pay for natural gas in rubles rather than dollars or euros. The move is a reaction to Russia's and its financial system's tightening sanctions.

Would Russia be able to use Bitcoin?

Although Russia has mentioned Bitcoin as a means of payment, it remains questionable whether the peer-to-peer currency can be used because, with a current market capitalization of just over $800 billion, it would face serious liquidity problems if it were to cover a significant portion of Russia's energy exports.

The United States government has repeatedly expressed concern that cryptocurrencies could be used to circumvent sanctions. Because of these concerns, several senators have proposed new cryptocurrency laws that would add non-U.S.-based crypto companies to sanctions list if they support sanctions evasion.

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