November 27, 2022

Taylor Daily Press

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Russia wants to replace the dollar with crypto and other currencies in the long term - BTC Direct

Russia wants to replace the dollar with crypto and other currencies in the long term – BTC Direct

It is an open secret that many countries want to become less dependent on the dollar. The US currency has served as the world’s reserve currency for decades and this gives the United States an unprecedented position of power.

El Salvador has shown that there is an alternative to the dollar, by adopting bitcoin as the national currency. Russia is closely watching these developments. Last week, President Putin said it was a bit early to use cryptocurrencies to trade oil.

The end of the dollar in Russia

Russian Foreign Ministry Taking into account the To exchange the US dollar for other fiat currencies, in addition to digital currencies.

Alexander Pankin, Deputy Foreign Minister, said in an interview yesterday, that Russia wants to reduce the share of the US dollar in international reserves. This also applies to the use of the dollar in international transactions.

Cryptocurrency

He did not rule out the possibility of replacing the dollar with “some digital assets” along with other currencies:

“It is possible in the long run to exchange the US dollar for other currencies, both nationally and regionally, as well as some digital assets.”

This cannot go on without a fight, Pankin says. The government needs to implement new processes for established models of cooperation between jurisdictions and businesses. In addition, all leveling systems must be repaired. And then he talks only about internal adjustments.

America can block transactions

There is a reason Russia wants to become less dependent on the dollar, making it easier to evade US government sanctions.

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“Payments in US dollars go through US banks and a clearing system that allows Washington to block any transactions it considers suspicious,” Bankin said. He added that the Russian government has not encountered such problems with the euro or other fiat currencies and has not planned similar measures for other national currencies so far.

In a sense, the State Department is saying the same thing as President Vladimir Putin. He said last week that it was too early to turn to cryptocurrencies to settle oil trades. In doing so, he is not rejecting digital assets, but rather opening the door wide open. The president recognized the ability of cryptocurrency to transfer money around the world.