Russian Economist Says Sanctions Hurt USD, Boost Digital Ruble

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By BitcoinWiki News

Key Takeaways:

– American sanctions may undermine the role of the US dollar in the global economy
– This could help the cross-border adoption of the digital ruble
– Russian economist Alexander Razuvaev stated that these actions could undermine confidence in the American currency
– Russian trading partners may turn to CBDCs as a dollar alternative
– Trade within the Commonwealth of Independent States (CIS) may soon be conducted using the digital ruble
– The US and allied nations blocked around $300 billion worth of sovereign Russian assets
– Some lawmakers have urged the EU and others to hand these assets to Ukraine
– The digital ruble is being trialed by 600 Russians, including politicians and bank staff

I. Introduction
A leading Russian economist, Alexander Razuvaev, has expressed his opinion that American sanctions will negatively impact the role of the US dollar in the global economy, potentially leading to increased adoption of the digital ruble. Razuvaev is a member of the supervisory board of the Guild of Financial Analysts and Risk Managers.

II. Impact of Sanctions
Razuvaev stated that the actions taken by the United States against Russia in response to the war in Ukraine would weaken global confidence in the American currency. He suggested that Russian trading partners could turn to central bank digital currencies (CBDCs) as an alternative to the dollar. The economist also mentioned the potential transfer of frozen Russian assets to Ukraine by the United States as a scenario that could further accelerate this shift away from the dollar.

III. Role of the Digital Ruble
Razuvaev emphasized the importance for Moscow to secure foreign trade links, proposing that trade in the Commonwealth of Independent States (CIS) would soon be conducted using the digital ruble. He noted that key members of the CIS, such as Belarus and Kazakhstan, have been accelerating their CBDC projects, and the Russian Central Bank has also initiated a pilot for the digital ruble. Razuvaev outlined potential scenarios where the digital ruble could be utilized for trade with partner countries.

IV. Geopolitical Implications
The economist addressed the possibility of the US dollar remaining as the world’s reserve currency but asserted that America’s actions have undermined the authority of the dollar. He suggested that the impact of these actions may be reflected in gold prices and could lead to a sharp increase. Razuvaev criticized the freezing of Russian Central Bank assets by the United States, describing it as counterproductive and remarking on the dilemma faced by the White House in handling these assets.

V. Pilot and Future Outlook
Razuvaev discussed the ongoing pilot of the Russian CBDC, with around 600 participants currently involved, including politicians and bank staff. He indicated that the pilot is expected to expand in the near future. The economist also mentioned statements by Russian officials, including Foreign Minister Sergei Lavrov, regarding the potential for the digital ruble to reduce the country’s reliance on the US dollar.

In conclusion, Alexander Razuvaev’s remarks indicate a growing sentiment in Russia that American sanctions and actions could lead to a decline in the US dollar’s global influence and bolster the use of the digital ruble in international trade. He has outlined potential scenarios for this shift and highlighted ongoing efforts to pilot the Russian CBDC, suggesting that the digital ruble could play a significant role in the future economic landscape.

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