Russian Foreign Minister Sergei Lavrov spoke at the Primakov Reading Forum about the future importance of cryptocurrency as an international settlement layer. Lavrov called these assets an “important role” in the future. Russia has been working hard to de-dollarize some of its activities, and this announcement may give people an idea of future plans.
Russian foreign minister says cryptocurrency can play an important role in settlements
Russian Foreign Minister Sergei Lavrov mentioned the future importance of cryptocurrency as part of the international settlement layer. Last week, Lavrov mentioned this when attending the Primakov Readings Forum, an important meeting of diplomats. The Russian Foreign Minister is optimistic about the use of cryptocurrency to resolve inter-state debts. Lavrov said:
I think that cryptocurrency will play a very important role, and the time to occupy a very important part of international settlement will inevitably come.
Russia is changing the way it handles international settlements and payments. On this issue, Lavrov emphasized that they are studying the use of domestic currency when engaging in bilateral trade. The Russian Foreign Minister pointed out:
We strive to rely more and more on other currencies. When conducting bilateral trade with our partners (with China, other SCO members, and some other countries), in terms of national currency…”
Russia has been pushing for the de-dollarization of some of its investment infrastructure to prevent possible increases in sanctions. Earlier this month, Finance Minister Anton Siluanov reported that the National Wealth Fund will abandon the U.S. dollar and switch to other currencies. The fund is currently valued at more than US$600 billion and will change to support RMB and Euro investments.
Many people view these actions as a strong political statement that Russia can survive without the need for U.S. dollars to trade. According to some experts, the Russians also use cryptocurrency as an important part of this strategy.
The issuance of the digital ruble may also play a key role in the future de-dollarization process. Lavrov announced that Russia is already developing a central bank digital currency. In fact, the Bank of Russia has revealed that they will build a prototype by the end of this year. The currency is designed in the same way as the digital renminbi, and the agreement is controlled by the government. However, commercial banks will also have the opportunity to provide intermediary services.
Cryptocurrency is also becoming more and more popular in the field of remittance. El Salvador declared Bitcoin as legal tender last week-this allows millions of citizens to easily enter the world of cryptocurrency. After the passage of historical legislation, the country’s bitcoin remittances soared, but they are still only a small part of the dollar-based remittances.
How do you see the role of cryptocurrency in international settlement? Tell us in the comments section below.
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