Foreign Affairs
Related: About this forumRussia is going crypto. Here's why you shouldn't invest in the crypto-ruble.
https://markets.businessinsider.com/news/currencies/dollar-dominance-russia-iran-gold-backed-stablecoin-crypto-2023-1The two sanction-hit countries want to issue a "token of the Persian region" for use in cross-border transactions, Russian news agency Vedmosti reported Monday. The plan is to launch it in a special economic enclave in Astrakhan in southern Russia, which already handles Iranian shipments.
Those payments are typically done in government-issued currencies such as the US dollar, Russian ruble and Iranian rial.
But the joint project will only be able to move forward once Russia's market for digital assets is fully regulated, according to a top Moscow lawmaker. In September, the Bank of Russia accepted the need to legalize crypto for international payments to soften the impact of financial sanctions, but has yet to clarify its plans.
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China, for another, has started to push for the yuan to replace the dollar in oil deals, given its increased trade with Russia after it invaded Ukraine. The rise of the so-called petroyuan could spread its influence across Asia for crude transactions.
Meanwhile, Russia and China have joined forces on another de-dollarization project. In June, President Vladimir Putin said Russia was looking to develop a new reserve currency with other BRICS nations
I'm gonna make some WILD predictions here:
* Prediction: The crypto-ruble will be used for international transactions related to trade... and the oligarchs will dump all of their assets into the crypto-ruble because the real ruble is tanking and russians banks are being sanctioned anyways.
-> As the oligarchs sell off their real ruble for crypto-ruble, the value of the ruble will crash even more due to inflation, ruining the russian economy and wiping out the savings of ordinary Russians... but who cares about those anyways.
"How can you complain about being broke? Putin knows what he's doing! How dare you criticize him! The Motherland is at war! If you need money, go join the army and fight in Ukraine!"
* Prediction: As Russia will hold the controlling stake in crypto-ruble, Russia will do what all the crypto-bros do: Manipulate the crypto-ruble value to make it swing up and down, and then make a profit by buying and selling at just the right times.
* Prediction: This is a new take of Russia's project of the "Eurasian Economic Union" to grab control over the economies of Belarus, Kazakhstan, Kyrgyzstan and Armenia, by forcing a Moscow-controlled "international currency" (like the Euro) onto them.
* Prediction: There is absolutely no question that Russia will establish it's own crypto-exchange, where people will have "bank-accounts" with their crypto-rubles.
What will be the odds of your bank-account getting hacked and your crypto-rubles getting stolen?
What will be the odds of Russia going FTX on your bank-accounts and using your crypto-ruble as collaterals for their financial investments/loans without your permission or knowledge?
Which russian law-enforcement agency will hold the russian government accountable when they do something illegal with your crypto-ruble bank-account?
Deep State Witch
(10,429 posts)A few years ago. I don't know what became of it, though. I kind of got out of that business.
okaawhatever
(9,462 posts)Mopar151
(9,989 posts)The story is as old as money, itself. Authoritarian governments are inherently corrupt! Simply put, they don't trust each other enough to stop stealing/skimming an amount sufficient to tank their whole deal. The "moneychangers" are in a position to orchestrate a rapid crash, and to make bank off the whole thing!
Yo_Mama_Been_Loggin
(108,035 posts)The first time I heard of bitcoin my computer was tied up with ransomware. They wanted $1000 in bitcoin. Fortunately I kept a backup and found some software to remove the malware.
Later found out the ransomware had originated in Russia.
eppur_se_muova
(36,269 posts)No.3: I have less data on this, but it may be smallpox. However, the first two reasons seem more than enough.