Russian President Vladimir Putin’s de-dollarization plans and search for a new reserve currency isn’t anything new as he once said,
“Because there’s instability when it comes to doing business with the dollar, gives rise to a desire – and it’s happening all around the world – to find alternative reserves currencies and create a financial system independent from the dollar.”
For the past few months, the de-dollarisation plans have been going in full force. The share of dollar-priced export revenue has also taken a hit as it drops from over 80% to about 69% in the second quarter of last year. In November 2018, Putin stated, in part,
“Dollar assets are decreasing, even among the largest holders of dollar assets. This is the result of imposing sanctions, including connections with the dollar. I think that this realization will come sooner or later and the world will look for alternative savings and transaction methods.”
However, this just might the because that will drive Bitcoin price to surge. According to the high-profile Russian economist, Vladislav Ginko who is a lecturer at Moscow’s Russian Presidential Academy of National Economy and Public Administration believes the Russian Government could begin investing billions of dollars in Bitcoin in the first quarter itself.
Ginko told an Australian publication, Micky, that the US Sanctions can force Russia into Bitcoin,
“US sanctions may be mitigated only through Bitcoin use.”
He further stated,
“Because of US sanctions, Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins. The central bank of Russia sits on $466 billion of reserves and has to diversify in case there are limited opportunities to do it (in the future).”
Ginko, who has held academic, as well as government relations roles in Russia, expects this to happen as early as in the next few weeks,
“I believe that Russia (Government) will start diversifying its reserves with Bitcoin in February this year when US Congress will introduce new sanctions against Russia.”
A supporter of bitcoin, he says, “Russia’s Government is not against cryptocurrencies,” and he has been persuading Russian officials to invest in Bitcoin,
“I believe that there is coming (in the future) when other countries will start doing that and Russia has a brilliant chance to invest into heavily oversold Bitcoin.”
Putin has in fact never condemned Bitcoin as he first stated in 2015 is not backed by anything is the major problem with cryptos but “they can be used, and their adoption becomes wider and wider, as some kind of unit in some account probably, it’s possible.”
Though he did address the risks associated with cryptos in 2017, he also said govt. would work on the regulations to use its advantages. Reportedly, last month, Putin has requested collaboration with NEO.
Not to forget that previously, it has been reported that Russia was a big supporter of Petro, the Venezuelan digital currency. If it is true, Russia has already immersed into crypto space more than any other developed country.