Russia Wants To Replace Its US Dollar Reserves With Crypto Assets

2021-10-19 20:20:01
Bye US Dollar

The Ministry of Foreign Affairs (MFA) in Russia reveals plans to permanently replace the US dollar with digital assets, i.e. cryptocurrencies. In addition to crypto, the MFA will also rely on other fiat currencies in the quest to find a replacement for the US dollar.

According to the official statement by the deputy minister of Russia’s MFA, Aleksandr Pankin, over time the country will greatly reduce the US dollar from its international reserves. Moreover, the MFA also reveals further actions. Specifically, that Russia will gradually stop using the dollar in future settlements with international partners as well.

While giving the statement, Mr Pankin put special emphasis on the ‘digital assets’ question. Revealing the overall pro-crypto gravitation of the country.

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.Aleksandr Pankin| Ministry of Foreign Affairs Russia

Furthermore, the MFA official recognizes that such a venture requires a great deal of government involvement. More importantly, creating an entirely new network of communication, as one of the first priorities. Also, producing and implementing proven collaboration methods between businesses and jurisdictions alike.

Additionally, this also requires a completely new set of mechanisms for the upcoming settlement systems.

Political Background

As expected, Mr Pankin reveals the recent US restrictions on Russia as the number one reason for the idea to replace the US dollar with crypto, i.e. digital assets. He further says that the country never faced similar problems with other national/fiat currencies. Consequently, revealing that the case with the US dollar is a unique situation.

Payments in U.S. dollars go through American banks and a clearing system, which allows Washington to block any transactions they deem suspicious.Aleksandr Pankin| Ministry of Foreign Affairs Russia

This news come after last week’s announcement of Vladimir Putin, the President of Russia.  In particular, he acknowledged that is ‘a bit early’ for the country to use crypto for buying and selling oil.

However, the president also said that the government is constantly monitoring the crypto scene. Moreover, he said that ‘everything evolves’ and ‘has the right to exist. Hinting that Russia is keeping an open mind for a potential future crypto integration.

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