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New reports came out this week claiming that the twelfth largest economy in the world is on the verge of investing $ 10 billion in the major cryptocurrency, Bitcoin.
Rumors came from a Russian economist and professor at the Presidential Academy of the National Economy and Public Administration in Moscow. Vladislav Ginko said that US sanctions are forcing Russia to diversify.
Speaking with the Australian cryptocurrency outlets Micky, Ginko said he believes Russia has no other options:
"US sanctions can only be mitigated through the use of Bitcoin, because of US sanctions, the Russian elite is forced to unload US assets and US dollars and invest heavily in Bitcoin. billions of dollars in reserves and must diversify if there are limited opportunities to do so ".
Recent reports show the impact that US sanctions are having on Russia:
"Sanctions and isolation are having an impact on the Russian economy, although Russia is not a major exporter to the United States, the energy and defense contracts canceled in Europe, along with the main funding bans Russia's credit institutions have had an impact on the economy.What else can explain the poor growth of history in the country since 2014? Even higher oil prices have done little to lift the economy Russian ".
Back in the summer last year, Russian state-sponsored news agencies RT, Russian President Vladimir Putin gave a speech to announce the need for alternative reserve currencies in global trade.
"As for our US partners with limitations, including those on dollar transactions, I think it's a big strategic mistake, which is undermining confidence in the dollar as a reserve currency."
As reported by Daily HodlHowever, at the time, Putin said that Russia is not going to stop using the US dollar unless it is prevented from doing so.
The president in Venezuela, Nicolas Maduro has recently announced that the country has created its cryptocurrency called Petro. This is an official government currency that is supported by the oil reserves of the nations. Following the launch, US President Donald Trump prohibited American citizens from investing in it by claiming that it was designed to avoid US sanctions.
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