As Russia continues to push for the abolition of the dollar, it is reported that the Ministry of Foreign Affairs (MFA of Russia) is considering replacing the US dollar with not only traditional fiat currencies, but also digital currencies.
Alexander Pankin, Russia’s deputy minister, highlighted the country’s plans to reduce the share of US dollars in Russia’s international reserves and use them for settlements with foreign partners in an interview on Tuesday with the local news agency Interfax.
The official said that the Russian Foreign Ministry does not exclude the possibility of exchanging US dollars for “some digital assets” with other currencies:
“It is possible to exchange US dollars for other currencies both nationally and regionally, as well as for some long-term digital assets.”
Pankin added that such compensation will require significant efforts from the state, including restoring established models of cooperation between jurisdictions and businesses, as well as creating new mechanisms for new settlement systems.
The official noted that Russia’s de-dollarization measures are in line with the country’s efforts to avert challenges to US government sanctions.
“Payments in US dollars go through US banks and a clearing system that allows Washington to block all transactions it deems suspicious,” Bankin said. He added that the Russian government has not faced such problems with the euro or other fiat currencies and is not yet planning similar measures for other national currencies.
On the subject: Bank of Russia estimates the size of Bitcoin Holdings at $ 36 billion leaving banks
For several years, Russia has been considering measures to reduce the dollar share of the National Wealth Fund to $ 186 billion. Local authorities are planning to significantly increase the reserves of the RMB and invest in gold.
Recent statements from the Ministry of Foreign Affairs confirm Russia’s obvious interest in using cryptocurrencies for international settlements. Last week, Russian President Vladimir Putin said it was “a little early” to use cryptocurrency to conclude oil deals. The president also recognized the potential of cryptocurrency to transfer funds around the world.