Note: This article was originally written in 2019. Updates of current events have been added to the end of the article.
I came across a VERY interesting developing story. What do you think about this?
Elvira Nabiullina, the head of the Bank of Russia, revealed that the bank may be interested in creating a gold-pegged crypto for conducting mutual settlements with global jurisdictions.
Following the Bank of Russia, an adviser to the President of Russia had previously suggested that launching a CBDC in Crimea could help the region to attract more investors and avoid sanctions.Read the full story HERE.
Being financially fit is more than just watching the stock market. It’s also important we know what’s going on in all aspects of finance. This is especially true when it comes to world finance.
7 Things To Consider
Most people may not think this story about Russia and crypto currencies is a big deal, but if you look at the big picture, it’s ramifications are HUGE. Let me explain.
#1. Many people don’t know that for centuries, GOLD was the basic currency of the world. The US dollar was valued based on the price of gold until 1971, when President Nixon took the dollar off the Gold Standard in 1971. Since then, the dollar is based on the value of nothing, but the full faith and credit of the United States.
And we’ve been printing it nonstop. The result? $21 trillion dollars in debt with it expected to go MUCH HIGHER.
#2. The article says “mutual settlements.” What this article does NOT elaborate on is what exactly that would be and with who?
The “what’ is trading of goods, like importing and exporting. The “who” is with a few countries in the middle east and with CHINA.
#3. IF this gets approved, it will basically squeeze the US and the American dollar out of the trading equation. Quite a few countries are trying to get AWAY from the US dollar, and a crypto currency backed by GOLD is a great way to do it. Currently, the US dollar is the monetary standard of the world, and many countries want to get away from the Dollar.
It’s already happening actually. Iran already has a gold-backed crypto currency.
#4. No one can deny the fact that the US is at odds with both China AND Russia. Just recently, both countries reached $20 billion dollar trade deals together that do NOT involve the US dollar. Do they have incentive to work together to hurt the United States?
China and Russia have signed more than US$20 billion of deals to boost economic ties in areas such as technology and energy following Xi Jinping’s summit with his “best friend” Vladimir Putin.Read the article HERE.
#5. Both China and Russia have been stockpiling huge amounts of gold, increasing their reserves tremendously over the past several years.
#6. If this crypto currency catches on, the US dollar could be in serious jeopardy, because it simply won’t be as valuable to the rest of the world. The world simply won’t need it as much.
Never mind Bitcoin, Crypto currency as a whole is here to stay. The question is, how will the dollar hold up, especially when other countries are willing to use gold instead?
#7. If Russia was indeed tampering with our elections, is this another way of trying to hurt us?
Today’s Events (2022)
As we all know, Russia is at war with Ukraine. Many countries have sanctioned Russia and are trying to hurt them economically. Both the ruble and Russian stock market have had serious losses, with the stock market being closed for several days. As said previously, Russia has been quietly accumulating gold for several years now.
Another point of interest is Russia’s decreasing use of the U.S. dollar. Also known as “De-Dollarization,” this means Russia will stop using dollars to conduct business and trades with other nations:
In January, Russia’s central bank published a report showing that gold had surpassed the U.S. dollars in the country’s reserves for the first time. Furthermore, Bitcoin News reported in August last year that Russia and China had been collaborating to reduce their dependence on the U.S. dollar, and trade settlements in USD between the two countries had fallen below 50%.
Russian President Vladimir Putin has made de-dollarization his country’s key policy in an effort to reduce the Russian economy’s exposure to dollar assets and reduce the effects of economic sanctions.
Since this article was originally published, the Russian central banks seemed to be against crypto. But as of last month, the central bank was warming up to the idea of using cryptocurrencies.
MOSCOW (Reuters) – Russia’s finance ministry on Monday said it would take proposals on cryptocurrencies from the country’s central bank into account so long as they do not contradict its own approach, paving the way for legislation governing digital assets.
Could the recent events prompt them to create a gold-backed cryptocurrency? Will Russia use their gold to help them economically? if so, how would that impact the dollar?
What Do We Do Now?
The entire world is seeing alarming increases in inflation and supply shortages. More than ever, it’s important become proactive and protect themselves. This can be accomplished in several ways:
- Stock up on food and supplies. This would include food, water, medicines and energy, such as home generators, candles, propane and alternative forms of power.
- Buy gold, silver, and cryptocurrencies. If the dollar crashes, it’s critical you have money outside the system. Even if it doesn’t crash, your accounts could be frozen at a moment’s notice. An example of this is the situation with the Canadian truckers.
Both of these were problems before the Russian invasion of Ukraine. No matter what happens, keeping at least 2 months’ worth of supplies is critical. In addition, the dollar has been steadily losing purchasing power, losing nearly 98% of its value since 1971.
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