Growing adoption of cryptocurrencies facilitates global financial transactions
Date
5/29/2024 8:02:14 AM
(MENAFN) Encrypted digital currencies are increasingly gaining traction in global financial transactions, offering swift transfers at minimal costs. According to experts familiar with Russia's experience, financial transfers using these currencies typically take only 5 to 15 seconds, presenting an attractive option for countries, companies, and individuals alike.
The global market value of CryptoCurrencies has surged to USD2.71 trillion, marking a remarkable 122.31 percent increase compared to the previous year. Bitcoin, the pioneering cryptocurrency, commands approximately 50 percent of this market value, amounting to USD1.34 trillion.
Amidst Western sanctions, Russian raw materials companies have turned to encrypted digital currencies to facilitate their financial transactions. Struggling to navigate the challenges posed by sanctions, these companies have found solace in the efficiency and accessibility of cryptocurrencies.
According to reports from Bloomberg News Agency, senior officials from two Russian metal companies unaffected by Western sanctions revealed their utilization of cryptocurrencies to settle transactions with Chinese counterparts. Notably, some deals were conducted through Hong Kong, underscoring the expanding reach of encrypted currencies in global trade.
The adoption of cryptocurrencies by major Russian corporations comes two years after the commencement of the conflict between Russia and Ukraine in February 2022. This shift underscores the enduring impact of Western sanctions on the Russian economy, prompting companies to explore alternative avenues for financial operations.
The challenges faced by Russian raw materials companies extend beyond those directly subject to sanctions. From metals like nickel and steel to wood, companies across various sectors have encountered difficulties in receiving payment for sales to foreign markets and procuring essential equipment and production materials. This plight underscores the broader repercussions of geopolitical tensions on global trade and financial stability.
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