Russia plans to cut US dollar share for digital currency
Aleksandr Pankin, Russia’s deputy foreign minister, said it was “possible” for Moscow to replace its US dollar reserves with digital currencies, but warns that this requires extreme efforts on the part of the government.
In an interview with Interfax, Pankin confirmed Russia’s intentions to also include the use of US dollars in settlements with foreign partners.
This is not a new problem as Russia has considered reducing the share of US dollars in its own $ 186 billion national welfare fund.
Not only would government intervention be necessary for Russia to succeed in its plans, but also establish models of cooperation between businesses and jurisdictions.
Pankin added that Washington owns the power to reject transactions when payments in US dollars are made.
“Payments in US dollars go through US banks and a clearing system, which allows Washington to block any transactions it deems suspicious,” Pankin said.
Russia ready to recognize crypto?
With oil being a key export for Russia, President Vladimir Putin thinks cryptocurrencies are valuable but remains cautious as to whether it can replace the US dollar in settling oil trade.
“I think it has value,” he told CNBC.
“But I don’t believe it can be used in the oil trade.
“Cryptocurrency is not supported by anything yet. It may exist as a means of payment, but I think it’s too early to talk about trading oil in cryptocurrency.
Dmitry Peskov, press secretary to Russian President Vladimir Putin, believes that Russia has no reason to recognize Bitcoin and said the country was not yet ready to take these steps.