As the Russian de-dollarization mission continues, it was reported that the MFA Russia – Ministry of Foreign Affairs – is looking to replace the US Dollar not just with other fiat currencies but also with cryptocurrencies.
In an interview with Interfax, a local news outlet, the deputy minister of foreign affairs, Aleksandr Pankin, emphasized the plans of the country to reduce the share of the US Dollar in its international reserve and also the usage of the currency in settling foreign partners.
The MFA representative said that the ministry of foreign affairs is not overruling the possibility of ousting the US Dollar with some cryptocurrencies together with some other currencies.
Alexsandr also added that that replacement, of course, would require some great level of effort from the Russian government, including reestablishing some cooperation models that existed between businesses and jurisdictions, alongside establishing new mechanisms that serve as settlement systems.
Also, he noted that the de-dollarization mission of the Russian government is in line with the efforts the country has put in place to avoid some challenges that come from the sanctions set by the United States government.
He stated specifically that one of the issues is payments having to go through the American banks, which allow the federal government to block every payment that looks suspicious, which is not so with other fiat currencies like Euro. This fact makes other fiat currencies a better replacement for the US dollar.
For a number of years, the Russian government has been looking into the steps needed to reduce the share of the US Dollar in its national welfare fund worth $186 billion. Also, local authorities are looking into the possibilities of increasing their investment in gold and Chinese Yuan holding.
The latest comment from the Russian Ministry of Foreign Affairs has revealed the further interest of the Russian government in using digital assets as a means of international payment settlement. A week ago, Vladimir Putin, the president of the federation of Russia, said it is quite early to consider using digital assets for settling oil trades. Also, the president admitted that digital assets have huge potential when it comes to the transfer of funds globally.