Russia has announced the launch of two BRICS cryptocurrency exchanges and a yuan-pegged stablecoin to circumvent sanctions and reduce dependence on the dollar.
Russia has announced that it will launch two state-owned cryptocurrency exchanges to integrate digital payments into trade settlements. US sanctions have forced Russia to look for alternative payment methods to support its economy. These two cryptocurrency exchanges will operate in different cities: one in Moscow, the other in St. Petersburg. In addition, Russia, being a member of BRICS, is also planning to launch a new stablecoin that will be pegged to the Chinese yuan.
It is planned to create stablecoins for yuan and for the basket in general BRICS currencies. Russia's bold plan, as a member of BRICS, is to peg the Chinese yuan to a new cryptocurrency-based stablecoin at a 1:1 ratio. This ensures its price stability without volatility, making it relatively safe to transact without fear of price fluctuations.
The BRICS stablecoin pegged to the Chinese yuan will help Russia bypass US sanctions and reduce its dependence on the dollar. Thus, the Russian ruble and the Chinese yuan will receive the greatest benefits in settlements within the new payment system. The US dollar will not play a role in this settlement system, which will allow local currencies to take a significant share in settlements.
China is very keen to make the yuan the only global currency. The first step was to abandon the dollar, and the second will be the introduction of a new BRICS stablecoin pegged to the Chinese yuan.
Currently, the only regulation applicable to potential crypto exchanges in Russia is the EPR (experimental legal regime), a law on this has just been adopted, says Mikhail Uspensky, a member of the expert council on legislative regulation of cryptocurrencies of the State Duma of the Russian Federation.
At first, a narrow circle of people will use the exchange in test mode, then the largest exporters and importers: subsidiaries and granddaughters of blue chips and businesses from their perimeter, believes Mr. Uspensky. According to him, it is unlikely that small and medium businesses, and especially individuals, will receive unimpeded access in the first wave. “It is important to emphasize once again that the contours of the future experiment are entirely at the mercy of the regulator,” the expert emphasizes.
The US dollar could face serious challenges in the coming years as the de-dollarization movement gains momentum. In addition, the BRICS alliance is pushing the Chinese yuan to the forefront of all cross-border transactions. Many developing countries have already begun to settle part of their accounts in Chinese yuan rather than the US dollar.
Author's opinion. It would seem that America will want to and will close all transfers in foreign currency for all categories of clients to Russian banks. And that's it, the end, the country is lost. But no! They came up with some crypto exchanges with stablecoins. But most people still believe in the unconditional dominance of the dollar, and no facts will convince them of anything. In America, there is still no clear regulation of digital assets, and here they are already launching CBDC. Have you noticed any interesting intersections in the routes of Pavel Durov and Vladimir Vladimirovich?
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