Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Last week, the Russian president said it was âa bit earlyâ to use cryptocurrencies to settle oil trades.
As Russia continues pushing de-dollarization, the Ministry of Foreign Affairs (MFA Russia) is reportedly considering replacing the United States dollar with not only traditional fiat currencies but also digital currencies.
Aleksandr Pankin, deputy minister of Foreign Affairs of Russia, reiterated the countryâs plans to reduce the U.S. dollar share in Russiaâs international reserves and its usage in settlement with foreign partners in a Tuesday interview with local news agency Interfax.
The official said that MFA Russia isnât excluding the possibility of replacing the U.S. dollar with âsome digital assetsâ alongside other currencies:
âItâs possible to replace the U.S. dollar with other currencies, both national and regional, as well as some digital assets in the long term.â
Pankin added that such replacement would require significant efforts from the government, including rebuilding established cooperation models between jurisdictions and businesses, as well as creating new mechanisms for new settlement systems.
The official noted Russiaâs de-dollarization campaign comes in line with the countryâs efforts to avoid challenges posed by sanctions from the U.S. government.
âPayments in U.S. dollars go through American banks and a clearing system, which allows Washington to block any transactions they deem suspicious,â Pankin said. He added that the Russian government has not faced such issues with the euro or other fiat currencies and doesnât plan similar measures for any other national currencies so far.
Related: ââBank of Russia to assess Bitcoin holdings volumes as $36B leave banks
For several years, Russia has been considering steps to cut the U.S. dollar share in its $186-billion national welfare fund. Local authorities are planning to dramatically increase its holdings of Chinese yuan and invest in gold.
The latest remarks from the Ministry of Foreign Affairs further reinforce Russiaâs apparent interest in using crypto for international settlement. Last week, Russian President Vladimir Putin said that it was âa bit earlyâ to use cryptocurrencies for settling oil trades. The president also admitted cryptocurrencyâs potential for transferring funds globally.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.