Russia’s recent push to set up its own cryptocurrency exchanges is causing quite a stir in the financial world.
George Tung, host of CryptosRUs, explains that this decision, motivated by Russia’s leadership role among sanctioned countries, reflects a broader strategy to distance itself from the US dollar. This development could mark a shift in global financial dynamics, especially as other countries consider hoarding Bitcoin as part of their strategic reserves.
George Tung stresses that Russia’s new exchanges will avoid any trading in US dollars, which is in line with the country’s ambition to operate independently of Western financial systems. The focus will instead be on fiat currencies of the BRICS countries, a move that is in line with the general trend of de-dollarization in these countries. Tung points out that Russia, like China, is closely monitoring possible US plans to hoard Bitcoin and could consider similar strategies for its own reserves.
As these countries make moves to accumulate Bitcoin, Tung suspects that a supply shock could be imminent. With limited amounts of Bitcoin available, increased demand from sovereign states could significantly impact the market. Russia’s recent resumption of cryptocurrency mining underscores this intent even further, with the country seemingly gearing up to secure as much of the digital currency as possible.
This move towards cryptocurrencies by major global players like Russia and China could usher in a new era in the digital currency space. As more countries begin to accumulate Bitcoin, the scarcity of this asset could drive up its value and potentially change the global financial landscape.
