According to VEB, a cryptocurrency backed by gold would be resistant to sanctions. RF experts
According to a report by the nation’s development organization VEB.RF, Russia needs a new system for international settlements to be able to function while under Western sanctions.
The paper claims that the imposition of financial sanctions against Russia, which, despite government efforts, causes the nation to suffer economic losses, also shows that a change to a fully new national financial and monetary system is necessary.
VEB. RF analysts recommend that Russia launch a stablecoin backed by gold with the working name “golden ruble.” According to their research, Western nations won’t have the chance to obstruct transactions made using such a currency because its exchange rate will be tied to the price of gold on the global market rather than the dollar, the euro, or even the fiat ruble itself. The “golden ruble” could be freely utilized in international transactions, including those involving third countries without Russia’s involvement. Gold backing would assure the currency’s immunity to sanctions.
Analysts have also suggested developing a framework for sanctioned businesses to work with cryptocurrency on crypto exchanges in friendly states or starting a national crypto exchange to enable trading of the “golden ruble.”
The Bank of Russia should create a system of international settlements with friendly nations in their national digital currencies based on distributed ledger technologies, according to the suggestion made by VEB.RF. It should also implement a hedging mechanism to reduce currency risks.
In addition to embracing digital currencies, analysts predict that Russia’s new financial system would also likely include extensive use of bartering techniques and new offshore financial hubs, particularly in China. They go on to propose developing a blockchain unit within the BRICS framework that would digitally replicate the special drawing rights system of the IMF.
The Mir payment system, which is comparable to Visa and Mastercard, as well as the SPFS interbank messaging system, which resembles SWIFT, are also mentioned in the VEB.RF report, and it is recommended that they be made available outside of Russia, at the very least within the CIS bloc and China.