Russia considers removing US dollar reserves and having digital assets in the long term.

Reports say the Russian Ministry of Foreign Affairs (MFA) is trying to swap cryptocurrencies for the US dollar to settle oil trades.

Share

Despite the fact that Russian president, Vladimir Putin, believes that it’s "a bit early" to replace USD with digital assets as the payment method for their oil trades, the Russian government seems to be determined to swap dollars for cryptocurrencies.

In an attempt to de-dollarize, Russian deputy minister of Foreign Affairs, Aleksandr Pankin, stated the Russian government’s plan to cut the US dollar’s role in their trade settlements and international reserves, according to an Interfax report on Tuesday and :

Mr. Pankin talked about the US dollar replacement alternatives:

"It’s possible to replace the U.S. dollar with other currencies, both national and regional, as well as some digital assets in the long term."

To make this replacement happen, great effort is required and certain measures need to be taken by the government. Establishing new mechanisms for new settlement systems, as well as rebuilding current collaboration models between jurisdictions and enterprises.

This measure was totally in line with the general policies of the Russian government and served as an attempt to dodge US sanctions and the problems it posed.

Regarding the main reason for this decision, Pankin says: "Payments in U.S. dollars go through American banks and a clearing system, which allows Washington to block any transactions they deem suspicious." And he clarified that since they haven’t had any such problems with the euro or other fiat currencies, they are not going to take any similar countermeasures against any national currency as yet.

It’s also interesting to know that cutting the US dollar share of its $186-billion national welfare fund has always been an important issue that the Russian government wished to achieve. Thus, Russia is going to invest in gold, ditch the US dollar and raise its Chinese yuan holdings.

Categories

Cryptocurrency(5)

Latest News

Shiba Inu wallet waitlist hits 1.6 and Robinood COO hails this

1.6 million people are in a queue for Robinhood's crypto wallet as pressure rises on this company to list one of the market's most popular memecoins. ...

NOV 10, 2021

BlockFi files for a Bitcoin ETF with physical backing

The Securities and Exchange Commission's decision on VanEck's proposal for a spot Bitcoin ETF is set to be made on November 14th. ...

NOV 08, 2021

Brazilian federal deputy proposes cryptocurrency as a payment option for workers

Goulart's plan calls for the passage of a new legislation that would provide all Brazilian employees the option to receive their payment in cryptocurrency from ...

NOV 07, 2021

Enjin tends to spend a new $100M to decentralize its metaverse

The fund will be dedicated to building the Efinity blockchain, focusing on seed equity investments. ...

NOV 04, 2021

Tags

Cryptocurrency

Russia

US dollar

Tags

Cryptocurrency

Russia

US dollar