As Russia continues to de-dollarize, the State Department (MFA Russia) is considering replacing its US dollar supply. It wants to do this not only with traditional fiat currencies, but also with digital currencies.
Plans of the Russian government
Aleksandr Pankin, deputy foreign minister of Russia, said in a interview with the Interfax news agency that the country has plans to reduce Russia’s share of US dollar reserves and their use.
The official said MFA Russia is not ruling out the possibility of replacing the US dollar with some digital assets:
“It is possible to replace the US dollar with other currencies in the long run. Both nationally and regionally, as well as some digital assets.”
Pankin added that a replacement would require significant government efforts. This includes rebuilding established collaboration models between jurisdictions and companies. As well as creating new mechanisms for new settlement systems.
The official noted that Russia’s de-dollarization campaign is in line with the country’s efforts to avoid challenges posed by US government sanctions.
“Payments in US dollars go through US banks and a clearing system. This will allow Washington to block any transactions it deems suspicious.” According to Pankin.
Russia wants less dollars
Russia has been considering reducing the share of the US dollar in its national fund for several years now. The country, on the other hand, wants to drastically increase its holdings of the Chinese yuan. In addition, they indicate that they want to invest in gold.
The latest comments from the Ministry of Foreign Affairs show that Russia is also looking at the possibilities of cryptocurrencies. Last week, Russian President Vladimir Putin said it was a bit early to use cryptocurrencies to settle oil trade. However, the president did recognize the potential of crypto to make money transferring easier worldwide.