Russia is considering, partially replacing dollarerves with digital assets in the future - finance

In the middle of the ongoing sanctions, the Russian government is working to limit the country's dependence on the US dollar. The Ministry of Foreign Affairs now says that it is possible to replace the Greenback in currency reserves and trade finishes in the future with other currencies and even digital assets.

official of the Ministry of Foreign Affairs sees that Russia acquires digital assets in order to reduce the dependence on the US dollar

In their efforts to counteract the negative effects of the expansion of the US sanctions, the Russian Federation focuses on the "dedollarization", the deputy foreign minister Alexander Pankin recently noticed in a Interview with the news agency Interfax. The "targeted work" to limit the influence of the US dollar on the inland economy and the foreign industry reduces the "sanction risks", the high-ranking diplomat continues.

The challenges associated with these sanctions remain, and Pankin said that Russia's "settlements with important trading partners need protection and stability in the context of the currency used". For the time being, Moscow does not threaten any threats of sanctions with euro payments and transfers, but US dollar payments. Pankin explained that they run through US banks and clearing systems that enable the authorities in Washington to block all transactions that they consider suspicious.

This would require considerable efforts in bilateral, regional and multilateral formats, said Alexander Pankin, who supervises international economic cooperation in the Foreign Ministry. Established models of cooperation between states and trade structures would have to be reorganized and suitable mechanisms to support the functioning of new settlement systems, explained the government representative.

Pankin's statements come after President Vladimir Putin Washington warned that "the United States cut off the branch on which they sit" by undermining the dollar for a current political profit. In conversation with the CNBC journalist Hadley Gamble, the Russian leader approved that cryptocurrency has a value and "right of existence". In the interview, from Kremlin last week he explained that Krypto can be used in the future in the trade in oil and other energy resources.

cryptocurrencies and the associated activities became partially regulated with the adoption of the law "via digital financial investments", which came into force this year, but Russia must continue to change its legislation to ensure comprehensive regulation. While digital coins regarded as a fundamental rate and according to applicable law (which confirms the ruble as the only legal means of payment) are prohibited as a means of payment, the government in Moscow recently stated not planned to prohibit the acquisition of cryptocurrencies.

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