Russia Uses Bitcoin To Hedge U.S dollar In Foreign Trade

Russia has been experimenting with digital financial assets in international trade. Russian Finance Minister Anton Siluanov spoke on the state-run news channel Russia-24 in December about alternatives to the US dollar for trade.

 

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The Russian government has passed legislation that permits foreign trade in DFAs and Bitcoin, according to Siluanov. The minister stated that such transactions have already been used and that Russia intends to expand and scale them further.

Siluanov stated that since DFAs allow for the use of contemporary infrastructure, their implementation in foreign trade as a substitute for the US dollar is “quite understandable” under the current conditions. “That is the future,” he added, describing it as an innovation in the global settlement system. “.

Russia legalized mining earlier this year, according to the finance minister. This explains why these kinds of transactions continue. We say they need to be developed and expanded, and I have no doubt it will happen next year,” he continued.

A few weeks after the finance minister warned the public against investing in cryptocurrencies in November, Siluanov made his most recent comments regarding DFAs and Bitcoin.  The minister said, “I don’t recommend it as a means of investment,” during a speech on November 6 at a local educational event.

Vladimir Putin, the president, stated earlier this month that the current U.S. administration was undermining the dollar’s role. Many nations are forced to look for alternative assets like Bitcoin because the dollar is used as the reserve currency for political purposes. Putin’s comments suggested that the Russian leader supports widespread cryptocurrency use.

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ABOUT THE AUTHOR See More
Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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