Russia & China Turn to Stablecoins Like Tether Amid US Sanctions
Cryptocurrencies are reshaping global payment systems, with Russia and China adopting more advanced methods due to US sanctions and a strengthening dollar. Stablecoins, like Tether, are at the forefront of these changes.
US sanctions on Russia have led to unexpected consequences. Rather than isolating Russia, they've pushed the country and its allies, like China, towards more efficient payment systems. Russian companies, even those not directly sanctioned, are turning to stablecoins like Tether (USDT) for faster, low-fee transfers, bypassing traditional banking systems and the dollar.
Two Russian metal producers, unaffected by sanctions, have started using Tether for payments with Chinese partners. This shift is due to secondary US sanctions that hinder raw materials trade between the two countries. Meanwhile, the Russian central bank has officially supported experiments with cryptocurrencies in international payments, despite some reservations.
The trend is not limited to Russia. Chinese banks are also feeling the heat from secondary sanctions. They're exploring stablecoins as an alternative to avoid penalties. This shift is making BRICS countries more dependent on the dollar, ironically, as they seek to reduce their reliance on it.
Cryptocurrencies, particularly stablecoins like Tether, are becoming a significant force in international payments. Driven by US sanctions, Russia and China are adopting these digital currencies to facilitate trade and circumvent traditional banking systems. While this shift poses challenges, it also opens up new avenues for faster, low-cost transactions.
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