In Russia, they proposed to create a crypto-gold ruble

RBC: VEB analysts.The Russian Federation, against the background of sanctions, proposed to create a crypto-gold ruble in Russia by analysts of the Institute for Research and Expertise of VEB.

The Russian Federation proposed, against the background of the imposed financial sanctions, to create a gold-backed stablecoin in Russia under the working name “golden ruble”. This is reported by RBC with reference to the report of the Institute.

Experts point to the need to find solutions for alternative currencies of foreign trade payments and the transition to a qualitatively different national financial and monetary system. In their opinion, the ruble issued by crypto gold would protect transactions with it from US blockages, since the currency exchange rate will be tied to the gold exchange rate on the world market.

It is assumed that the main difference from the digital ruble will be precisely in the gold collateral, as well as in the fact that the “golden ruble” will be directed not to internal settlements, but to external ones, including between third countries without the participation of Russia.

“I found myself without a home and savings”The collapse of cryptocurrencies: how did investors lose billions of dollars in just a week?On May 20, 2022, experts also propose to launch a mechanism for working with cryptocurrencies for leading sub-sanctioned companies on crypto exchanges in friendly countries or to create a national crypto exchange.

The authors of the report draw attention to the fact that cryptocurrency in modern conditions is a real alternative to the dollar and as a trading instrument with high volatility looks more attractive than many other assets.

The report proposes to develop a system of international settlements of the Central Bank with friendly countries in national digital currencies based on distributed registry technologies, this requires political coordination. It follows from the document that the new financial system can be built, among other things, on the large-scale use of barter schemes and the creation of new offshore zones, in particular with China.

In addition, it is proposed to extend the Mir card system to payments in foreign currencies of friendly countries and to support at the government level the connection of Russian banks (including those under sanctions) to the UnionPay system. Analysts also point to the possibility of turning the Financial Message Transmission System (SPFS, the Russian equivalent of the SWIFT system) into an international payment system in the CIS and Greater Eurasia, including China and other friendly countries, and also suggest thinking about reviving the project of an international payment system within the CIS.

Digital gold.Millions of people invest in cryptocurrencies. Can they save savings from inflation?On April 18, 2022, the Russian Export Center (REC), which fell under Western sanctions, announced its intention to start testing calculations in cryptocurrency.

The REC wants to become a platform for an experiment, a so-called sandbox, in order to identify possible technological risks when paying with cryptocurrency.

Due to sanctions, opportunities for international settlements in Russia are limited. Against this background, the Ministry of Finance at the end of May proposed to allow Russian businesses to use cryptocurrency as a means of payment for foreign trade activities. The bill still prohibits paying with cryptocurrency on the territory of Russia. However, legal entities and individual entrepreneurs are proposed to be allowed to pay for their foreign trade contracts with tokens, in particular, to pay for the supply of goods from abroad, works, services and intellectual activities using an “identifier provided by the operator of the digital trading platform.”