The Beginning of the End of the US$?
I read this morning that a Russian university lecturer with ties to his government says the Kremlin will soon begin investing massively in Bitcoin as a way of avoiding U.S. sanctions, a move that could happen “in a matter of weeks.”
Vladislav Ginko of the Russian Presidential Academy of National Economy and Public Administration believes new U.S. sanctions will push the Kremlin into diversifying its cash reserves into Bitcoin.
Ginko who has ties with the government going back more than 20 years says the move will happen in a matter of weeks. Ginko has in recent times appeared on various Russian media platforms clamouring for the adoption of Bitcoin as a haven asset.
"US sanctions may be mitigated only through Bitcoin use. Because of US sanctions, Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins. The central bank of Russia sits on $466 billion of reserves and has to diversify in case there are limited opportunities to do it (in the future)."
Along with China, Iran, and Venezuela, Russia is exploring ways to reduce its US Dollar dependence. Back in November Russian President Vladimir Putin declared that in the wake of new sanctions, the country had no choice but to cut down on its use of the Dollar in international trade.
At the time, President Putin said:
"We have no goal of moving away from the Dollar. It’s the dollar that’s moving away from us. Those making such decisions are not shooting themselves in the foot, but somewhere more delicate, further up the body."
Interesting. The latest economic warnings point to the likelihood of further turmoil, perhaps another crash. Black Rock Asset Management issued a severe warning late last year about the sheer scale of US debt and that following another crash the dollar could lose its position as the worlds default currency.
As a famous songwriter once sang, "the times, they are a changing."