Russia seeks „Dedollarization“ via digital assests

The Russian government is replacing its US Dollar reserves with other currencies and digital assets

FinTech has opened new gateways for Russia to escape US sanctions, relieving both the domestic economy and foreign trade operations of Russia. In doing so, the law “On Digital Financial Assets” will be improved to make way for crypto institutionalization. To the relief of Russian crypto miners, this announcement by Deputy Foreign Minister Alexander Pankin eliminates fears of a country-wide ban. Currently, digital coins have the status of money surrogates prohibited to be used as payment tools, rendering their use to mere commodities. The prohibition has been indicated to be revoked by Moscow. Other national and regional currencies are being considered, however, as with crypto, the statements have so far been very vague on which ones.

Currently, international transactions of the Russian state pass through US banks and clearing systems, which subsequently allows US authorities to block them. This directly diminishes the credibility and stability of Russian finance, as partners cannot be certain that their transactions are approved. Circumventing this mechanism will need international partners to cooperate, however. Minister Pankin spoke of efforts in creating new bilateral, regional and multilateral projects.

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