Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
Russia Launches Payment System Without Limits – Digital Currencies To Be Completely Unlimited – Regulation Bitcoin News
Russia is launching a new payment system that is “not bound by restrictions” where digital currencies can be used in cross-border payments, Russian Finance Minister Anton Siluanov said. “Two parties come to an agreement, make settlement payments, and no other country could intervene and freeze such payments,” the top official explained.
Digital currency ‘bound by no limitations’ in Russia’s new payment system
Russian Finance Minister Anton Siluanov said on Monday that a new payment system will be launched in which the use of digital currencies in international payments will be completely unlimited, Russian news agency Tass reported.
“We are launching an alternative payment system based on modern technologies (digital financial assets, digital currencies),” said the finance minister. He elaborated:
Digital currencies can be used in cross-border payments. This is only in the earliest stages of discussions, but the future lies with the use of the digital ruble, the digital yuan and other similar currencies.
“This is a payment system that is not bound by any restrictions. Two parties come to an agreement, make settlement payments, and no other country could step in and freeze such payments,” Siluanov emphasized.
Due to the economic sanctions imposed by the US and other Western nations after the start of the war between Russia and Ukraine, Russia has intensified its efforts to reduce its dependence on the US dollar. The US and Western allies have seized more than $300 billion in Russian central bank foreign currency assets frozen by sanctions.
The Bank of Russia has explored the creation of a digital currency, the digital ruble, as a way to shift away from the US dollar. A report published by the US Congressional Research Service in July 2021 describes the Russian government accelerating its de-dollarization efforts in 2014, noting that the launch of a digital ruble “would further reduce Russia’s dependence on Western (and dollar-centric) payment infrastructure.”
Russia’s de-dollarization push
Finance Minister Siluanov also revealed on Monday at an educational marathon event that the Russian ruble and the Chinese yuan are already replacing the US dollar in mutual settlements between Russia and China, Tass also reported. Asked whether the ruble or the yuan could replace the USD, the top official replied:
We are already looking at this. For better or for worse, I think this is the situation today. This is our currency… It replaces [dollar] already. If we look at the structure of trade between Russia and China, now more than 70% — it is already in our national currencies.
What do you think about Russia creating a new payment system “bound by no restrictions”? Let us know in the comments section below.
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