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 Greek Herald 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 Greek Herald.
More InformationBRUSSELS, Belgium: EU tech chief Margrethe Vestager has said that a draft code of conduct on artificial intelligence (AI) could ...
MOSCOW, Russia: After a turbulent 15 months of store closures and declining demand, Russian designers and brands are assisting the ...
BEIJING, China: On his return to China after a three year absence, which is his company's largest production hub, Tesla ...
SANTA CLARA, California: As investors piled more capital into Nvidia, the chipmaker that has become one of the biggest winners ...
WASHINGTON D.C.: The U.S. Commerce Department has said that trade ministers from 14 countries have taken part in the US-led ...
Dubai [UAE], June 5 (ANI/WAM): As the world unites on June 5th to commemorate World Environment Day, Dubai has reiterated ...
BRUSSELS, Belgium: EU tech chief Margrethe Vestager has said that a draft code of conduct on artificial intelligence (AI) could ...
norfolk, virginia - People living in and around the nation's capital experienced a rare, if startling, sound: a sonic boom.The ...
No. 6 seed Holger Rune of Denmark survived a five-set thriller against No. 23 seed Francisco Cerundolo 7-6 (3), 3-6, ...
Hong Kong - Hong Kong police Monday said they detained 27 people on suspicion of destroying social peace over a ...
Matthew Wolff withdrew from his U.S. Open qualifier Monday in Boynton Beach, Fla., as speculated persisted about his future with ...
STE MARE EGLISE, Normandy, France - While U.S. military officers here caution against too direct a comparison between the 1944 ...