August 30, 2024
By Anjali Kochhar
Russia’s recent decision to launch its own cryptocurrency exchanges is generating a lot of attention in the world financial community. The host of CryptosRUs, George Tung, emphasizes that Russia is attempting to disassociate itself from the US dollar and Western financial institutions in general. Russia hopes to strengthen its standing among nations under international sanctions by establishing these exchanges, which could signal a change in the dynamics of the global financial system.
Tung explains that Russia’s new exchanges will specifically avoid transactions involving the U.S. dollar. Instead, they will focus on fiat currencies from BRICS nations, which includes Brazil, Russia, India, China, and South Africa. This aligns with the growing trend among BRICS countries to reduce their dependence on the U.S. dollar and adopt alternative financial strategies. As a result, Russia’s move is not just a response to its current geopolitical situation but also part of a larger de-dollarisation trend.
Russia’s strategic interest in cryptocurrencies is further underscored by its recent reopening to cryptocurrency mining. This move indicates Russia’s intent to accumulate significant amounts of digital currency, potentially as part of a broader plan to enhance its financial independence. Tung suggests that other nations, including China, may also be exploring similar strategies, potentially considering the stockpiling of bitcoin as part of their reserve assets.
The potential impact of these developments on the global bitcoin market could be substantial. With sovereign states like Russia and possibly China looking to increase their bitcoin reserves, the limited supply of bitcoin could face significant upward pressure. This increased demand could lead to a supply shock, fundamentally altering bitcoin’s market dynamics and possibly driving up its value.
Russia’s formation of new cryptocurrency exchanges and emphasis on de-dollarisation represent a strategic shift that might have far-reaching consequences for global financial systems and the cryptocurrency market.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
