Under heavy sanctions from the US, the potential of a value-pegged cryptocurrency could help Russia escape from the usage of the Dollar as a currency standard.
Russia’s State Duma member Vladimir Gutenev proposed the creation of this digital asset. He suggested the tying of the value to gold would alleviate issues found in cryptocurrencies, and that this offering would be likened to a stable coin.
Breaking US Dollar bonds
Russia has honed in on gold reserves as a way to fight the US Dollar hegemony already. Boosting such reserves allows them to diversify foreign exchange and reduce reliance on the US dollar. It has, of late, been part of Russia’s national policy.
The central bank reported in May that their gold holdings amounted to nearly $492 billion.
Russia Stunningly Explores a Gold-Backed Crypto to Settle Payments https://t.co/F9xPv2z3Nw
— CCN Markets (@CCNMarkets) May 23, 2019
The possibility of tokenizing and digitizing their stores would give them a lot more freedom and power with the value of their gold reserves. However, cryptocurrencies launched by the central bank are still being met with resistance.