Formerly not conducive to cryptocurrencies and adjacent technologies, Russia had to change its posture after the showers of sanctions inflicted by the West. L'” special operation » carried out in Ukraine quickly changed its face to the point of revising the world order established since the end of the Second World War. As a consequence of this aggressive Russian initiative, we have noted a strong dedollarization of international tradea rise of BRICS, a rush of new powers towards financial alternatives based on cryptos, CBDCs and many others. According to the latest news, Russia is preparing to accelerate in the effective decentralization of its finance. The local government is indeed preparing to legalize decentralized financial organizations (DAO).
1.
In short
2.
Russia is banking on cryptos and DAOs
3.
Russia and its anti-sanctions remedies: crypto is gaining ground
In short
- Russia prepares to legalize DAOs after Vladimir Putin promulgates a bill on Digital Financial Assets (DFA) in 2020
- Objective: attract investors and increase the liquidity of the local digital financial assets market
Russia is banking on cryptos and DAOs
Would China have put pressure on Russia to develop a central bank digital currency before the West? At the moment, Beijing and Moscow are among the administrations most advanced on CBDCs, described by crypto-enthusiasts as anti-decentralization.
Vladimir Putin received lightning from bitcoiners by ratifying the law introducing the digital ruble last July.
“ The Russian Ministry of Finance plans to support DeFi (decentralized finance) organizations in order to increase money flows into the market, especially as sanctions have impacted the Russian economy. »
Crypto Potatowho relayed the information, did not fail to mention Ivan Chebeskov’s comments during the Crypto Summit 2023.
As a reminder, the DAOs, which Russia thinks it is promoting, are similar to decentralized autonomous organizations which rely on cryptocurrencies, blockchain technology and smart contracts. Very efficient in the management of several types of financial transactions, and in a decentralized manner, they will be able to boost the liquidity of Russian markets in very little time.
How would DAOs improve Russia’s current situation? Speak development of activities related to DeFi like crypto lending, digital asset exchanges and storage, staking, etc.
“ We actively advocate for the development of DFAs, but we understand that DFAs alone will not take off; we need a connection between DFAs and the world of decentralized finance to use existing liquidity in decentralized finance », argued Mr. Chebeskov.
Normally, the legalization of DAOs by a country must go through a small redefinition of the concept. But given the urgency, Russia will expressly turn a blind eye to the risks they represent.
Russia and its anti-sanctions remedies: crypto is gaining ground
Hit by more than 14,000 sanctions (Source: Statista) since the start of the war against Ukraine, Russia has had no choice but to seek other alternatives for emancipation. There were among others:
- the project of payments for Russian imports in bitcoin ;
- the digital ruble, whose official launch was scheduled for 1er august ;
- the intensification of bitcoin mining activities giving Russia second position behind the United States;
- the development ofa national crypto exchange, although subsequently abandoned;
- the deployment of Bitcoin ATMs throughout the country (around 50 bitcoin ATMs identified in October 2022);
- etc.
And to drive the point home on the West side, dedollarization is in full swing. Indeed, several countries have joined the cause and have no shortage of initiatives to take revenge on the monopoly of the American greenback.
Last June, for example, Iran brought together nine countries around a replica of the SWIFT network developed by Russia itself, the SFPS. India, to which Biden and Macron took turns rolling out the red carpet, did not hesitate one bit to negotiate with the Emirates without having to resort to the American dollar.
Also, we will note the BRICS efforts, recently gathered in South Africa. The latter would count on Ripple’s XRP crypto as an effective means of circumventing the dollar. The idea of reducing China and Saudi Arabia’s investments in US Treasuries was greeted with enthusiasm by the collective of countries with recently revitalized significant economic growth rates.
As for Russia, no initiative regarding the full legalization of bitcoin is on the horizon. However, this tickled Russian lawmakers last December. Especially when they thought of associating the queen of cryptocurrencies with international trade.
In any case, the sanctions seem to have reached the heart of the Russian economy. Kim Jong-Un’s simple visit to the country is already worrying Westerners. They fear a possible supply of weapons from the grand master of North Korean crypto hackers Lazarus Group.
Receive a summary of the news in the world of cryptocurrencies by subscribing to our new service daily and weekly so you don’t miss anything of the Tremplin.io essentials!
