According to Federico Pieraccini of Global Research,
for most countries including Russia, de-dollarization has become a pressing
issue” and other economies are taking note of the benefits of decentralized
systems as opposed to the Federal Reserve minted Green Back. He says:
“Russia, as well as other countries, de-dollarization has become a pressing issue. The number of countries that are beginning to see the benefits of a decentralized system, as opposed to the U.S dollar system, is increasing,”
Although Pieraccini’s research dates
back to Oct 2017, the shift is already being felt in Russia. Vladislav Ginko, a
Russian economist, recently noted that Russians have opened thousands of
Bitcoin address which is an indication that Russia is having a higher appetite
for decentralized financial systems.
In a tweet,
“It’s obvious[ly] that Russia’s big state and private companies are behind this bull run. Since the beginning of April up to now, they have opened at least 80 thousand new active Bitcoin addresses. Mosco-city, Russia.”
This is not the first time the
economist is portraying the relationship between Russians and Bitcoin in a
Early last month, Ginko claimed
that companies and affluent individuals in Russia have purchased 1.8 million
Bitcoin clarifying that the state was not involved. However, he adds that the primary
catalyst is in readiness of any economic sanction “so they purchase Bitcoin as a way to circumvent US sanctions.”
However, as noted by Pieraccini, using
Bitcoin to reduce the impacts of US sanctions is just a section of the larger
picture; to move away from depending on the dollar for international trades.
Why Is It Always
According to Global Research, the USD
plays a pivotal role in international trades due to: “the petrodollar; the dollar as a world reserve currency; and Nixon’s
decision in 1971 to no longer make the dollar convertible into Gold.”
Now, Russia wants to re-introduce the
use of Gold and ‘digital Gold” that is Bitcoin (BTC)), in international trades
through stockpiling. Also, due to the cryptocurrency revolution and as reported
by Ethereum World News, Russia is reportedly accumulating Bitcoin.
“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.”
But it is not the de-dollarization
alone. To help mitigate the effects of the sanctions, the country is moving
away from SWIFT, a messaging system used by banks and financial institutions
across the globe. Already, steps towards this detachment are already in place.
In March, Russian lawmakers approved the use of a SWIFT-alternative beyond the
Russian borders. Turkey, Iran, China, and India are said to be in talks to
adopt the new system.
Furthermore, research done last year
during International Women’s Day revealed that Russians prefer cryptocurrencies
as gifts. During the celebrations, men admitted to getting Bitcoin and crypto
as gifts instead of “Rubles.”
the Path Ahead
To aid in Bitcoin and crypto mass adoption, Vladimir Putin, Russia’s president, has been on the front line pushing for regulations to provide a level playing ground for crypto traders, investors, and businesses in the country.
With the ongoing competition to
overthrow the USD from its position as a reserve currency and diluting its
importance on global trades, the question remains if the USD will soon be
another currency for Russia or Bitcoin and other cryptocurrencies will take the
steering wheel in international trades.