Russian Gold-Backed Crypto Slams the Global US Dollar Standard

When sanctions backfire

Russian Gold-Backed Crypto Slams the Global US Dollar Standard


Under heavy sanctions from the US, the potential of a value-pegged cryptocurrency could help Russia escape from the usage of the Dollar as a currency standard.

Russia’s State Duma member Vladimir Gutenev proposed the creation of this digital asset. He suggested the tying of the value to gold would alleviate issues found in cryptocurrencies, and that this offering would be likened to a stable coin.

Russia has honed in on gold reserves as a way to fight the US Dollar hegemony already. Boosting such reserves allows them to diversify foreign exchange and reduce reliance on the US dollar. It has, of late, been part of Russia’s national policy.

Maybe it's just me, but I see the rise of alternate currencies to the US dollar in global transactions as a threat to our economy. What happens to our interest rates when the worldwide demand for the dollar drops?

 

If there has to be an entity to back it, the concept of having a cryptocurrency (in the usual meaning of the word) becomes pointless.

You seem to be conflating two issues here, so that makes it more difficult to have a focused discussion.

So I'll save my thoughts about the decline of the dollar for another thread that doesn't involve an article about this stupid Russian crytocurrency idea.

 

The Russians (and much of the world) want an alternative to the US dollar. I agree that the Russian idea isn't really cryptocurrency in the way Bitcoin or some of the other types are, but I think what they are looking for is a currency backed on something that will garner trust for widespread use. To the Russians, I think this is a cryptocurrency in the sense that it won't have an actual physical presence, but will just exist digitally. That may be a hybrid that could be acceptable for world wide trade.