Arms Exports from Russia Could Be Paid in Gold-backed Cryptocurrency Soon
Russia has impressive Gold reserves that continue to grow.
Recently they also dropped some of their US Treasuries holdings.
A new step in the direction of de-dollarisation may be trading in a cryptocurrency.
Then they wouldn't have to worry about ruble manipulation or economic sanctions or this or that.
Rumors have it that some influential lawmakers are exploring the idea.
We're not weighing the good vs. the bad here.
What's notable is that cryptocurrencies can be used for good or for bad, and that's nothing new.
The underbanked can access monetary resources they would otherwise have no access to.
The unbanked would have the opportunity to participate in the global economy.
Arms dealers could continue to trade unhindered by international sanctions.
The new round of US economic sanctions announced in April 2018 as punishment for Russia's involvement in the Syrian conflict prompted a number of responses, some more subtle than others.
An important one could be the gold-backed cryptocurrency Russia is considering to implement.
That way they could circumvent the dollar-based trades and the entire SWIFT system, both under US control.
If such a project will be rolled out, it wouldn't be inconceivable that other economic powers would contemplate the available options.
To mention only a couple, China and India are also important gold holders.
There are already gold-backed tokens in circulation.
One of them is the Royal Mint Gold (RMG), which has a $1 trillion backing in actual gold bars stored in the Royal Mint vault in Wales.
The value of 1 RMG is the value of one gram of gold.
Another such project is under development by the largest precious metals refinery in Australia, the Perth Mint.
It sure is an interesting topic to keep an eye on.
Whatever the future holds, we'll have a part of it.
Zoom out and take a look at the bigger picture to pick wisely.
If this piqued your interest, read more here.
