Russia Could Be Preparing To Dump Ties To The U.S. Dollar, Move To Crypto

Russia Could Be Preparing To Dump Ties To The U.S. Dollar, Move To Crypto

A source with close ties to the Kremlin has said that Russia could be considering moving away from the U.S. dollar in favor of cryptocurrencies.  Vladislav Ginko of the Russian Presidential Academy of National Economy told Australian news outlet Micky that the Kremlin might soon begin making large investments in Bitcoin Core (BTC) to loosen the country’s connection to the U.S. in light of a new round of sanctions introduced by the Trump Administration last year.  

Ginko has a relationship with Russia’s government that spans more than 20 years.  He explained that President Putin has been searching for ways to break economic ties with the U.S. and that the move to crypto could happen “in a matter of weeks.”  He added, “US sanctions may be mitigated only through Bitcoin use. Because of US sanctions, Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins. The central bank of Russia sits on $466 billion of reserves and has to diversify in case there are limited opportunities to do it (in the future).”

The U.S. has placed fresh sanctions on countries such as Russia, China, Iran and Venezuela.  As a result, all of them have been searching for ways to distance themselves from the U.S. dollar.  When the U.S. introduced the sanctions against Russia last year, Putin asserted, “We have no goal of moving away from the Dollar. It’s the dollar that’s moving away from us. Those making such decisions are not shooting themselves in the foot, but somewhere more delicate, further up the body.”

Ginko adds that the Kremlin is expected to begin looking for ways to diversify its reserves next month.  In addition to crypto, the country is also purchasing large amounts of gold, which has resulted in the price of the precious metal rising.  Russia is also said to be enhancing its economic ties with China to create a new payment system that would not be dependent on the U.S. dollar.

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