The US dollar continues to be buffeted by global forces as new adversaries emerge to challenge its dominance. proposed using digital rubles and crypto payments to diversify international payment procedures and completely abandon the dollar.
Russia has proposed a new law that would allow the country to use cryptocurrencies and digital rubles to conduct international trade with its trading partners. The new law, which will be submitted to the Russian parliament on July 23, is an active step in Russia's efforts to circumvent sanctions imposed on it by the United States (and others).
🇷🇺 BREAKING: PUTIN PROPOSES DIGITAL CURRENCIES IN RUSSIA
Putin has signed the digital ruble bill into law, paving the way for Russia's own central bank digital currency (CBDC).
Crypto mining in Russia accounts for 1.5% of total energy consumption nationwide, he added.
The… pic.twitter.com/a4sTBW8KBr
— Mario Nawfal (@MarioNawfal) July 17, 2024
“This is necessary for businesses, especially in cases related to sanctions mechanisms, when they need to enter the international market, and this cannot always be resolved using standard methods,” said the head of the supervisory board, Yuri Chekhanchin.
However, the watchdog was quick to point out an important fact, indicating how the infrastructure would be created. The dynamics of exchange rates in Russia are changing, and alternatives are currently being developed that could compete with the US dollar.
Russia is not alone in pioneering the CBDC space, actively proposing the use of a digital ruble. In addition to the BRICS member UAE, Middle Eastern countries such as Bahrain and Saudi Arabia have entered the advanced stages of CBDC testing. Georgia and Kazakhstan are now in the advanced stages of “proof of concept” after leading two CBDC pilot programs.
In one of Putin's latest speeches, the Russian president praised the invention of the digital ruble, giving the concept more room to develop further without additional intervention.
Despite the tough sanctions imposed by the United States, Russia is still trying to keep its economy thriving. Russian President Putin recently struck a deal with Iran to unify national currency mechanisms to boost trade. Russia is also negotiating with Belarus and China to find common financial ground to work on. Cryptocurrency payments will play a crucial role in Russia’s global presence. The country is also accelerating plans to combat the dominance of the US dollar. The BRICS bloc of countries is currently busy creating its own currency system. It aims to push aside the US dollar by establishing its global reputation..
Russia and China have almost completely eliminated the US Dollar in bilateral trade. pic.twitter.com/XDoaTg3fOE
— BRICS News (@BRICSinfo) April 22, 2024
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