Aleksandr Pankin, the deputy minister of Foreign Affairs of Russia, said it’s “possible” Moscow could replace its US dollar reserves with digital currencies, but warns it requires extreme effort from the government.
In an interview with Interfax, Pankin confirmed Russia’s intentions that also include the usage of US dollars in settlement with foreign partners.
This is not a new issue as Russia has considered reducing the share of US dollars in its own National Welfare Fund worth $186bn.
Not only would government intervention be required for Russia to succeed in its plans but also establishing cooperation models between businesses and jurisdictions.
Pankin added Washington possesses the power to reject transactions when payments in US dollars are made.
“Payments in US dollars go through American banks and a clearing system, which allows Washington to block any transactions they deem suspicious,” Pankin said.
Russia ready to recognise crypto?
With oil being a key export for Russia, President Vladimir Putin believes cryptocurrencies have value but remains cautious on whether it can replace the US dollar in settling oil trades.
“I believe that it has value,” he told CNBC.
“But I don’t believe it can be used in the oil trade.
“Cryptocurrency is not supported by anything as of yet. It may exist as a means of payment, but I think it’s too early to say about the oil trade in cryptocurrency.”
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