In January of 2018, Russia shipped what they claimed to be the first international commodity trade that was paid for in crypocurrency to Turkey. The shipment of Wheat was sent to Samsun using Bitcoin allegendly cut opperation costs. Is growing Russian interests in Bitcoin another politically motivated move to push Turkey away from the United States? It possibly could be.
Other than making every Bitcoin investor jump with joy, does Russia using crypocurrency connect to their foreign policy interests? Besides cutting a lot of red tape and lowering costs, international commodity trading might see a bump in Bitcoin usage because of consumer confidence in Blockchain and Russian support. Using crypocurrency might coax Turkey away from her American ally. The internationally accepted currency for commodity trading up to this point has been the Dollar, giving the United States a lot of sway. Hikes in the value of U.S. currency might be detramental to Turkish economic interests considering the country’s extensive history with currency manipulation. With the Turkish Lira currently standing 3.8 to the dollar, a change in currency value could be detrimental to Turkish economic interests. If the international community agreed to crypocurrency like Bitcoin as the new medium for this sector it could, eventually, be a blow to the United States. Another reason for Russia to support crypocurrency in the international community is the possibility of using it to get around international sanctions. Venezuala and North Korea are countries under U.S. sanctions that already use crypocurrency. Though international sanctions reduce access of countries to the international trade and financial system, support of crypocurrency in the international community could lead to an easy workaround which would be a huge change in the U.S.’s bargaining power. While cryptocurrency has its skeptics, there is no longer a question of if it will be used but rather the question is to what extent it will be used to take the middle man, the United States, out of the equation of international commodity trading. For Russia, investing in crypocurrency might be the next step towards influencing Turkey’s relationship with the United States.
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Betsy NelsonDigital Marketing Management and Strategy based out of Munich, Germany. Archives
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