Russia Pursues Global De-Dollarization with New Payment System Utilizing Digital Currencies
Russia is moving forward with its plan to create an alternative payment system that will allow for the use of digital currencies, including cryptocurrencies, for international payments. The announcement was made by Russian Finance Minister Anton Siluanov, who stated that the new payment system is based on modern technologies such as digital financial assets and digital currencies.
According to Russia’s TASS news agency, the payment system will include not only digital currencies such as the digital ruble and digital yuan but also cryptocurrencies. Siluanov emphasized that digital currencies can be used for cross-border payments, and the payment system will be free of any constraints.
The move towards an alternative payment system comes as Russia seeks to reduce its dependence on the US dollar following economic sanctions imposed by the US and other Western countries in the aftermath of the Russo-Ukrainian War. This effort is also part of a global de-dollarization strategy being pursued by Russia in cooperation with China.
The Bank of Russia has previously stated that the entire cross-border payment system will undergo changes and could be created based on a national digital currency within the next 5-7 years. The move towards a digital payment system also reflects a growing trend towards digital currencies globally, with countries like China and the Bahamas already launching their own digital currencies.
The announcement by the Russian Finance Minister has been met with both excitement and skepticism. Some experts believe that the move towards digital currencies could provide a significant boost to Russia’s economy, while others have expressed concerns over the potential risks associated with cryptocurrencies, such as volatility and the potential for use in illicit activities.
Despite these concerns, it is clear that Russia is making significant strides towards creating an alternative payment system based on digital currencies. The next few years will be crucial in determining the success of this new payment system and its potential impact on the global financial landscape.
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