Russia plans oil-based cryptocurrency to dodge US sanctions

The move is an attempt to counter fluctuations in the energy market

Russia is in the “final stage” of developing a state cryptocurrency linked to oil, it has been reported.

The move is an attempt to counter crippling US economic sanctions – a tactic Moscow freely admits to.

Former Energy Minister Igor Yusufov told Russian news site Rambler: “The logic of the development of the digital economy on a global scale suggests exactly this path of development, in the current situation of the oil market and the instability of payments in dollars.

“After the launch of the cryptocurrency platform, oil-producing countries will be able to manoeuvre with respect to financial and trade restrictions, which have become too many in recent years.”

Iran, North Korea, Russia, and Venezuela are all investing in cryptocurrencies in an attempt to counter US economic might.

US sanctions work by placing bans on dealings and transactions with persons, nations, and companies.

Fighting sanctions

These prohibitions are often enforced with the help of mainstream financial institutions.

But cryptocurrencies do not operate within this established system.

Vladimir Gutenev, the first deputy head of the economic policy committee of the State Duma, said Russia should conduct transactions in cryptocurrencies linked to the value of gold to frustrate “US attempts to thwart deals on Russian weaponry and civilian goods.”

“And I’m sure that this will be a very interesting option for China, India, and other states as well,” he added.

Last month, Coin Rivet reported Russia’s plans to introduce a ‘CryptoRuble’ to rival Bitcoin are in full swing.

It is understood that Vladimir Putin himself has ordered teams of experts to create a cryptocurrency that will allow the Russian leader to bypass international sanctions and keep many of his country’s huge intercontinental transactions under the radar.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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