Russia’s strained relations with the West have led to Sanctions against the country and if a new report is to be believed, the country is trying to dodge those sanctions by developing its own Cryptocurrency. The report claims that this cryptocurrency is intended to help Russia evade international financial sanctions.
The sanctions have seen dozens of Russian Government Officials, businesses, and agencies being banned from using the U.S. financial system and even the greenback. Many of these sanctions were in response to the country’s annexation of Crimea from Ukraine in 2014.
The Financial Times reported today that Russian President Vladimir Putin has ordered government agencies to develop a “cryptoruble.” The report cites unnamed Moscow-based officials.
The cryptocurrency will give Russia a completely different way to settle financial transactions in roubles, the Russian currency, while circumventing financial sanctions that hinder Russia’s financing options.
President Putin’s economic advisor, Sergei Glazev, reportedly said about the cryptocurrency during a meeting of Russian government officials that “We can settle accounts with our counterparties all over the world with no regard for sanctions.”
The report mentions that the country still needs time to get all the parts working so it may be a while before we see a cryptorouble emerge on the scene. However, a state-run cryptocurrency like it would not aid attempts by the United States to put pressure on Russia’s economy.