In a statement to RT, a Russian finance official asserted that Russia currently occupies the second global position in cryptocurrency mining and expects to secure the top spot soon.
The official further emphasized his country’s collaboration with BRICS partners to develop an independent payment system for internal trade using digital currencies—a development causing worry in the United States.
Experts suggest a link between Western media attention on Russia’s cryptocurrency sector and SWIFT’s planned shift toward digital currencies. Konstantin Ordov, head of the Financial Markets Department at Plekhanov Russian University of Economics, proposes that the US aims to retain its global dominance in digital finance.
The expert stressed that sanctions accelerated Russia’s progress in digital finance, and Washington now fears being surpassed by Moscow’s advancements.
He declared: “The US cryptocurrency industry saw rapid growth starting in 2009, and after China’s mining prohibition, the US solidified its top spot. However, sanctions backfired, as the Kremlin’s pivot to mining dramatically changed the global landscape.”
Russia, like other nations, is striving to increase transactions in national currencies and introduce methods for global fund transfers. The objective is to break Western monopolies and lessen dependence on Western currencies in global trade.
To achieve this, Russia passed legislation last August allowing experimental cryptocurrency use in international commerce.
Russia is also working with BRICS nations to create an electronic international payment system. This system’s establishment is expected to be a significant discussion topic at the upcoming BRICS summit in Kazan.
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Sanctions Backfire: Russia’s Crypto Rise Sparks US Worries
Russia’s burgeoning cryptocurrency sector is making waves, prompting concerns in the United States. A recent statement from a Russian finance official claims Russia is the world’s second-largest cryptocurrency miner, poised to overtake the current leader. This assertion isn’t merely boasting; it reflects a strategic shift driven by Western sanctions.
The Kremlin’s embrace of crypto, experts suggest, is directly linked to the West’s attempts to isolate Russia through financial mechanisms like SWIFT. The narrative unfolding paints a picture of sanctions ironically fueling Russia’s progress in digital finance. By forcing Russia to explore alternative financial systems, the sanctions may have inadvertently created a formidable competitor in the global cryptocurrency arena.
This isn’t just about mining power. Russia is actively collaborating with BRICS nations to develop an independent digital currency payment system for internal trade, a move explicitly highlighted as a source of US anxiety. This initiative represents a direct challenge to the US dollar’s dominance and Western-controlled financial networks. The upcoming BRICS summit in Kazan is expected to feature this system as a key discussion point.
Konstantin Ordov, head of the Financial Markets Department at Plekhanov Russian University of Economics, argues that the US, having enjoyed a period of dominance since China’s mining ban, now fears being surpassed. He paints a picture of sanctions backfiring spectacularly, transforming Russia into a major player in the digital finance landscape.
Russia’s strategy is clear: reduce reliance on Western currencies and financial systems. Legislation passed last August allowing experimental cryptocurrency use in international commerce underscores this commitment. The development of a BRICS-backed digital payment system represents a significant step towards achieving this goal, potentially reshaping the global financial order. The increased media attention on Russia’s crypto activities, according to Ordov, is a reflection of this growing concern within the US. The race for dominance in digital finance is on, and Russia appears to be a strong contender.