Global de-dollarization has been active for years as countries like Russia, China, Iran, and others find ways to insulate themselves from the US sanctions. Now, Russian President Vladimir Putin has reportedly backed the de-dollarization plan. What do mean it for Bitcoin and cryptocurrencies now?
Russian President Vladimir Putin on the move for de-dollarization
Dedollarization has been on the move for many years now but looks like it has been sped up with the way latest events are taking a turn. Russian President Vladimir Putin supports removing the dollar as he backs a tentative de-dollarization plan to protect itself from the future US sanctions.
In May, Putin has said that the country can’t trust US dollar-denominated finance system due to violating WTO rules and imposing unilateral sanctions. He also said dollar monopoly is not only unsafe but also dangerous for the global economy.
Andrey Kostin, the head of Kremlin-owned bank VTB now told the local news agency that Putin is supporting the plan that will wean Russia off the US Dollar.
This plan would involve blacklisting the state-owned lenders along with barring them from using US Dollars. However, the plan that has support from the central bank as well as the finance ministry won’t phase out the American currency completely.
The country has been already discussing the idea of de-dollarization due to the sanctions imposed by the US. These further intensified when in August a bill was introduced to Congress that has a number of measures targeting the financial institutions of Russia.
Kostin submitted proposals to move back from greenback and promote Russian ruble in July. The Finance Ministry already supports the plan and reportedly the role of USD is already diminishing in the country. Moreover, the central bank is already pursuing de-dollarization and will continue to do so.
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