Russian MP proposes cryptocurrency pegged to gold for arms deals to counter U.S. sanctions 22055

Is Russia really trying to avoid a power play with the U.S? A new report states that a senior Russian Official lawmaker devised a game plan to keep the U.S from meddling with the country’s arms dealings. A Russian M.P and the first deputy head of the economic policy Committee at the State Duma (the Russian), Vladimir Gutenev has propositioned to the Kremlin to create a gold-backed cryptocurrency for transactions dealing with arms exports of the country. This according to him will help the country escape the financial sanctions from the west.

“[The] U.S. attempts to thwart deals on Russian weaponry and civilian goods,” said  Gutenev. The U.S and Russia are the two leading military powers of the world. Both countries are in competition to be the world’s largest weapon provider and they are both considered as the world’s largest weapon providers, according to statistics. The countries peg their weaponry sales valuation over $50 billion annually.

The U.S, this year, has sanctioned six Russian entities for allegedly defying the weapons of mass destruction non-proliferation treaty. Gutenev has recommended a way out for Russia to evade these sanctions in the future. He wants Russia to avoid a U.S- dollar based commerce and also suggested opting out from services provided by U.S influenced payment platforms like SWIFT.

[Russia should] consider the possibility of conducting transactions in cryptocurrencies that are linked to the value of gold. And I’m sure that this will be a very interesting option for China, India, and other states as well,” said Gutenev, according to the report. “This instrument suits us very well for sensitive activity on behalf of the state. We can settle accounts with our counterparties all over the world with no regard for sanctions,”  he added.

The proposed scheme is in the wake of the Russian President Vladimir Putin reportedly announced that the country will be launching its own cryptocurrency, Cryptoruble. A Times report revealed that Russia secretly helped Venezuela launch Petro to escape U.S sanctions. “Behind the scenes, the petro was, in fact, a collaboration—a half-hidden joint venture between Venezuelan and Russian officials and businessmen, whose aim was to erode the power of U.S. sanctions,” according to the reportIf the news is, in fact, true Russia is definitely is looking forward to avoiding sanctions from the U.S govt and the gold back cryptocurrency for arms dealings might be a dream come true for the Russian govt.

See Also: Bitmain-backed mining pool to support Ethereum [ETH], Ethereum Classic [ETC]

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Published on

2018-08-30 18:29:37

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Priyanka Babu

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