At the Primakov Reading Forum, Russian Foreign Minister Sergei Lavrov spoke about the future importance of cryptocurrencies as an international settlement layer. Lavrov referred to these assets as having a “significant role” in the future. Russia is attempting to reduce some of its activities to the dollar, and this statement may offer a glimpse of future plans.
Russian foreign minister says crypto could play key role in settlements
Russian Foreign Minister Sergei Lavrovy referred to For the future importance of cryptocurrencies as a part of the international settlement layer. Lavrov made the reference last week while attending the Primakov Reading Forum, an important diplomatic meeting. The Russian foreign minister was optimistic about the use of cryptocurrencies to settle debts between countries. Lavrov said:
I think the time will inevitably come when cryptocurrencies will play a very important role, occupying a very important segment in international settlements.
Russia is changing the way it approaches international settlement and payments. On this topic, Lavrov stressed that he is looking at using national currencies when engaging in bilateral commerce. Russian Foreign Minister said:
We try to rely on other currencies as much as possible. On national currencies when it comes to bilateral trade with our partners – with China, other SCO members, many other countries…”
Russia has been Push De-dollarizing part of your investment infrastructure as a way to protect against potentially increased sanctions. Earlier this month, Finance Minister Anton Siluanov reported that the National Wealth Fund would ditch the dollar for other currencies. The fund, currently worth more than $600 billion, will instead support yuan- and euro-based investments.
These actions are considered by many to be a strong political statement that shows Russia can survive without needing dollars to do commerce. According to some experts, the Russians are also outlining cryptocurrencies as an important part of this strategy.
Issuing a digital ruble could also play an important role in this de-dollarization push in the future. Lavrov announced that the development of a central bank digital currency was already underway in Russia. In fact, the Bank of Russia manifest They will build a prototype for the end of the year. The currency will be designed to operate in the same way that the digital yuan operates, with the government in control of the protocol. However, commercial banks will also have the opportunity to provide arbitration services.
Cryptocurrencies are heating up in the remittance sector as well. El Salvador last week declared bitcoin as legal tender – something that could ease the entry of millions of its citizens into the crypto world. bitcoin remittance in the country increased After the historic legislation was passed, but they are still only a fraction of their dollar-based counterparts.
What do you think about the role of cryptocurrencies in international settlements? Tell us in the comments section below.
image credit: Shutterstock, Pixabay, WikiCommons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell any products, services, or companies, or a recommendation or endorsement of any products, services or companies. bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the Company nor the author is responsible, directly or indirectly, for any damage or loss alleged to be caused by or in connection with the use or reliance on any materials, goods or services mentioned in this article.