Russia aims to replace U.S. dollar reserves with digital assets in the long-term

As Russia continues to promote de-dollarization, it is reported that the Russian Ministry of Foreign Affairs (MFA Russia) is considering not only traditional legal tender but also digital currency to replace the U.S. dollar.

Russian Deputy Foreign Minister Alexander Pankin reiterated on October 19 that Russia plans to reduce the share of U.S. dollars in Russia’s international reserves and its use in settlements with foreign partners. interview With the local news agency Interfax.

The official stated that MFA Russia does not rule out the possibility of replacing the U.S. dollar with “some digital assets” and other currencies:

“In the long run, it is possible to replace the U.S. dollar with currencies of other countries and regions and some digital assets.”

Pan Jin added that this replacement requires major efforts by the government, including rebuilding the established cooperation model between jurisdictions and companies, and creating new mechanisms for a new settlement system.

The official pointed out that Russia’s de-dollarization campaign is in line with the country’s efforts to avoid the challenges posed by US government sanctions.

“U.S. dollars are paid through the Bank of America and the clearing system, and Washington can block any transactions they consider suspicious,” Pan Jin said. He added that the Russian government has not encountered such problems with the euro or other legal currencies, and currently has no plans to take similar measures against any other national currencies.

Related:Bank of Russia assesses Bitcoin holdings because $36B left the bank

For many years, Russia has been consider Measures to reduce the share of the U.S. dollar in its National Welfare Fund of 186 billion U.S. dollars.The local authority is planning Significantly increase RMB holdings and invest in gold.

The latest remarks from the Ministry of Foreign Affairs further strengthened Russia’s apparent interest in the use of cryptocurrencies for international settlements. last week, Russian President Vladimir Putin said It is “a bit early” to settle oil transactions using cryptocurrencies. The President also acknowledged that cryptocurrencies have the potential to transfer funds around the world.