Duma Deputy Chair Insists Gold-Backed Stablecoins & Crypto-Mining Be Allowed In Russia 'To Circumvent Sanctions'
First there was Tether; the controversial dollar-backed cryptocurrency that so many of the US establishment are fearmongering about. Then the Chinese launched a gold-backed, yuan-denominated oil futures contract. After that came Petro, the industry's first oil-backed crypto issued by the Venezuelan government. And now we might be about to see the first gold-backed cryptocurrency - by a central bank, no less.
As Putin advisor Sergey Glazyev has said in the past, "the ruble is the most gold-backed currency in the world," and judging by reports from the RIA Novosti news agency tonight, the days of a digital, gold-backed-Ruble could be getting closer.
But first, some background of just how Russia's dollar-gold-crypto thinking has evolved over the past few years…
In May 2018, Russia began to accelerate its de-dollarization strategy by dumping a record amount of US Treasuries from its reserves.
Also in May 2018, the Central Bank of Russia released a report May 30, stating that crypto assets do not currently threaten global financial stability as the global volume of crypto transactions is very low.
According to the report, crypto assets do not pose a risk to global financial stability, because at present the volume of crypto asset transactions is very low compared to the scale of the global financial system. The relation of this segment to the financial system is insignificant, according to the report.
But, the paper states that crypto assets could constitute a risk to financial stability in the case of further market growth, large-scale involvement of retail and institutional investors, banks, and other market players. According the the central bank’s report, the high price volatility of crypto assets prevents them from being a reliable standard of value, means of exchange, and store of value.
In June 2018, Russia announced plans to double its gold-mining production.
While Russia is currently the world's third biggest gold miner after Australia and China, that could change in less than a decade, according to Mikhail Leskov, deputy CEO at the Moscow-based Institute of Geotechnology, as quoted by Vedomosti. This would make Russia the world's second largest producer of the precious metal.
In March 2021, the Russian Finance Ministry gave the green light for the Russian National Wealth fund to diversify and invest in gold and other precious metals.
According to a report by RT, this is part of a broader move to de-dollarize the wealth fund.
https://www.zerohedge.com/crypto/duma-deputy-chair-insists-gold-backed-stablecoins-crypto-mining-allowed-russia-circumvent