RT.com
22 Jun 2022, 22:13 GMT+10
A cryptocurrency backed by gold would be immune to sanctions, according to VEB.RF analysts
Russia needs a new mechanism for international settlements to be able to operate under Western sanctions, a report by the country's development corporation VEB.RF says.
According to the report, the introduction of financial sanctions against Russia, which, despite state measures, results in economic losses for the country, also indicates that a transition to a completely different national financial and monetary system is in order.
VEB.RF analysts suggest that Russia should create a gold-backed stablecoin under the working title 'golden ruble'. According to their research, Western countries will have no opportunity to block operations carried out in such a currency, since its exchange rate will be pegged to the gold rate on the world market, not to the dollar, the euro or, for that matter, the fiat ruble itself. Gold backing would ensure the currency's immunity to sanctions, and the 'golden ruble' could be used freely in external transactions, including those between third countries without the participation of Russia.
Analysts have also proposed launching a mechanism for working with cryptocurrencies for sanctioned companies on crypto exchanges in friendly states, or the creation of a national crypto exchange to facilitate 'golden ruble' trading.
VEB.RF suggests that the Bank of Russia should develop a system of international settlements with friendly countries in their national digital currencies based on distributed ledger technologies, and introduce a hedging system for eliminating currency risks.
Besides diving into the digital currency world, analysts say Russia's new financial system could incorporate large-scale use of barter schemes and new offshore zones, especially with China. Further on, they suggest creating a blockchain unit within the BRICS framework, which would mirror the IMF special drawing rights system, albeit in digital form.
The VEB.RF report also draws attention to Russia's MIR payment system (a Visa and Mastercard analogue) and SWIFT-like SPFS interbank messaging mechanism, and suggests that they should be expanded outside of Russia, at least within the CIS bloc and China.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of South East Asia Post news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to South East Asia Post.
More InformationMOSCOW, Russia: The UK newspaper, the Telegraph, has been blocked in Russia, following a request from the Russian prosecutor-general.The TASS ...
LAHORE, Pakistan - An Airbus 320 carrying 171 passengers narrowly avoided an accident at Allama Iqbal International Airport, Pakistan's second-largest ...
WASHINGTON, DC - U.S. President Joe Biden on Friday vowed to "do all in my power" to protect a woman's ...
YANGON, Myanmar - According to military-run media, a junta delegation discussed nuclear technology collaboration with a Russian state-owned atomic energy ...
DHAKA, Bangladesh - The United States Agency for International Development (USAID) is providing more than Tk2.3 crore in emergency funding ...
PHNOM PENH, Cambodia: Cambodian villagers on the Mekong River have caught a stingray fish weighing 661 pounds, which is the ...
SYDNEY, NSW, Australia - Stocks in Asia rose on Tuesday after China announced it would halve quarantine from 14 days ...
LONDON, England: As prices in stores throughout Britain rise, British consumers shopped less in May and also expressed less confidence ...
SAN FRANCISCO, California: General Motors' self-driving Cruise division has begun charging fares for driverless rides in San Francisco.Earlier this month, ...
NEW YORK, New York - The euphoria on Wall Street of late last week was absent on Monday as all ...
WASHINGTON D.C.: In May, sales of new U.S. single-family homes unexpectedly increased, but this is expected to be temporary, as ...
LONDON, England: British Airways' staff at London's Heathrow airport has voted to strike due to pay disputes. Amidst an already ...