Russia plans to tackle U.S. sanctions with bitcoin, Kremlin economist says

Section:

By Hasan Chowdhury
The Telegraph, London
Monday, January 14, 2019

Russia is preparing an investment in bitcoin to replace the US dollar as a reserve currency in a bid to tackle US sanctions, according to a Russian economist with close ties to the Kremlin.

Vladislav Ginko, an economist at the Russian Presidential Academy of National Economy and Public Administration, a state-funded institution, said the government is taking steps to minimise the impact of US sanctions that have hit the Russian rouble by replacing some of its US dollar reserves with the world's most popular cryptocurrency.

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US sanctions on Russia over the past year have come after the poisoning of former Russian military officer Sergei Skripal. Mr Ginko believes Russia’s de-dollarisation decision is fundamentally a move to "protect its national interests" due to a possible interruption of "US denominated payments flows for Russian oil and gas" and claims investment could be as much as $10 billion. ...

The Russian government "is about to make a step to start diversifying financial reserves into Bitcoin since Russia is forced by US sanctions to dump US Treasury bonds and take back US dollars," Mr Ginko said.

"These sanctions and the will to adopt modern financial technologies lead Russia to the way of investing its reserves into bitcoin." ...

The alleged Russian plans to invest in the digital asset would see the state purchase almost a sixth of the world's bitcoin, though Mr Greenspan believes the buy order could push the price and valuation up, reducing Russia's share following a potential investment. ...

... For the remainder of the report:

https://www.telegraph.co.uk/technology/2019/01/14/russia-plans-tackle-us...

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