Will billion-$-country Saudi Arabia settle international trade using Bitcoin? Finance Minister shuns USD
- With Bitcoin already a legal tender in two countries - El Salvador and the Central African Republic - Saudi Arabia feels obligated to have an open thought on international currencies.
- Bitcoin has deep liquidity and the potential to gain in value over time, a feature that fiat currencies around the world lack.
The kingdom of Saudi Arabia may consider using Bitcoin among other different currencies away from the traditional USD to settle international trades, according to the finance minister.
The global leading oil exporter is planning to strengthen relationships with other nations including China and the USD may not come into play.
Moreover, countries like Russia have indicated their openness to accepting Bitcoin to settle international trades, particularly oil exports and imports.
The kingdom of Saudi Arabia has maintained a currency peg to the dollar for decades and is now ready to diversify into other currencies to open up its global relationships.
For instance, China pledged to buy more oil from the Middle East during President Xi Jinping’s visit to Riyadh last year. Most importantly, the two countries agreed to use the Yuan - that has a digital version - to settle international trade.
Mohammed Al-Jadaan, Saudi Arabia’s finance minister said in an interview with Davos.
With Bitcoin already a legal tender in two countries - El Salvador and the Central African Republic - Saudi Arabia feels obligated to have an open thought on international currencies.
Furthermore, Bitcoin has deep liquidity and the potential to gain in value over time, a feature that fiat currencies around the world lacks.