Russia may Replace Dollar Reserves with Crypto Assets
The Foreign Minister of Russia was recently speaking with the journalist on the matter of Bitcoin and other cryptocurrencies. This interview holds a lot of value, considering that Russia has been trying to minimize the impact and influence of the US dollar in its local economy and international trade industry. Alexander Pankin is the serving deputy at the foreign minister officer currently.
Shedding some light on the matter, he claimed that the government of Russia has embarked on a mission called ‘dedollarization.’ He further explained that for many decades Russia has become dependent on the green paperback for capital reserves and international trade transactions.
Russia to Consider Substitute for USD
Presenting the state’s point of view on the matter of cryptocurrency adoption, Deputy foreign minister Pankin told the media that decreasing the impact of USD within the commercial circle of Russia is a necessity. He added that over the years, most countries have had to depend on USD for conducting international trade. However, this action poses a higher threat factor for the sovereignty of any state.
Russian President, Vladimir Putin, has claimed in the past that the USA uses the dollar as a weapon. Pankin said that all payments that are made in USD have to go through the US Banks and financial watchdogs. Such a necessity grants the US government the power to stop any transactions that they deem unlawful or suspicious. Therefore, the Russian diplomat holds the opinion it is better for Russia to find a better substitute for the dollar like cryptocurrencies.
Pankin was speaking to a local Russian media outlet called Interfax News Agency. He also added that Moscow has been able to stay away from the threat of sanctions and legal obstacles in the case of euro-centric payments. However, the trade settlements that are made with USD have been creating many obstacles for the country.
For the time being, the act of using cryptocurrencies as payment has been banned in the country to prevent monetary devaluation. However, many investors have started to treat digital assets as a new surrogate for money and ruble. Furthermore, the financial regulators in Moscow have also decided to allow citizens to keep acquiring and investing in cryptocurrencies.