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Russian Foreign Minister believes that Cryptocurrencies will be used to settle debts in future.

Pooja
Pooja

If the future of finance is crypto, then Russia may be at a competitive advantage.

Russian Foreign Minister Sergei Lavrov recently stated that he thinks cryptocurrencies could play an important role in financial settlements someday; if this becomes true, than it would put his country "to good use" as they are one of the world largest energy exporters and have many other resources to offer.

The Foreign minister of Russia is optimistic about the future of cryptocurrencies. He made this remark while attending last week's Primakov Readings Forum, an important diplomat meeting that focuses on international relations and foreign policy topics. He suggested using cryptocurrency to settle debts among countries as a "fundamental principle" for Russia in international settlements layer.

Also, Sergei's reference comes after he unveiled his proposal on how blockchain technology could be used by governments around the world, saying: "Blockchain can help authorities implement their regulatory functions more efficiently."

On this note, he quoted that,

We strive to rely more and more on other currencies. On national currencies when it comes to bilateral trade with our partners – with China, other SCO members, a number of other countries…

Russia is taking a big step to protect their economy by moving away from the dollar and investing in other currencies. The Russian Wealth Fund, which totals $600 billion dollars currently, will be backing yuan-based investments instead of those that are backed with US currency. Experts say this action might also mean they're profiling cryptocurrencies as an investment option for the future when more countries start getting on board

Interestingly, the country has been pushing to de-dollarize part of its investment infrastructure as a way of protecting from possible increased sanctions stemming from recent events such as Russia's interference in foreign elections or accusations about Trump being compromised by Russians. Earlier this month Finance Minister Anton Siluanov reported that it would ditch the dollar for other currencies like Chinese Yuan (which many people believe as political strategy)

Ruble - The Digital Currency

The development of a central bank digital currency is in the works for Russia. Russian Foreign Minister, Sergey Lavrov declared that "The issuance of a digital ruble might also play an important part in this push to de-dollarize" and they are currently developing it as we speak with prototype being ready by Christmas 2021.

This will be similar to China's model where the government has control over all protocol but commercial banks can still offer intermediation services.

On the other hand, El Salvador's declaration of Bitcoin as legal tender for remittances has shot up the uptake in cryptocurrency adoption, increasing access to financial services and unbanked populations. This legislation is a landmark moment which will contribute to economic growth  by providing them with tools they need to thrive on an international level without borders or barriers.

We hope this article was informative and interesting . If yes, do let us know your thoughts in comment section below

cryptoBankOfRussiaSergei LavrovrussiaRuble

Pooja

Lead writer at Wolfcone.com and avid reader. My interests lie in everything and anything related to technology. I firmly believe cryptocurrency has the power to revolutionize world economy and blockc