Vladimir Putin spoke in favor of a “decentralized” financial system at the Eurasian Economic Union Forum in Moscow.
Is Putin Winking at Bitcoin?
The Russian president continues to lead the rebellion against the international order. The Tsar asserts that “more and more states are embarking on the path of strengthening national sovereignty, pursuing an independent domestic and foreign policy […] ».
“And these are not empty words”he launched before highlighting the close relations of Russia with the main international associations such as the BRICS, the Shanghai Cooperation Organization, ASEAN, the Cooperation Council for the Arab States of the Gulf, as well as with multilateral organizations in Latin America and Africa.
V. Putin particularly welcomed developments in the international monetary system:
“Many rapidly developing economies, including China, India and Latin American countries, are adopting national currencies in their foreign trade regulations. It is important to coordinate our efforts to create a new decentralized global financial system. The stability of global finance will largely depend on the evolution of this decentralization. The more decentralized the system, the better. The global economy will then be less dependent on crises in countries that still enjoy an advantage in the form of global reserve currencies. This will enhance the security of transaction settlement and the global economy while separating politics from the economic sphere. »
This is the first time that the Russian president has used the word “decentralized” to characterize its ideal monetary system. Is this a nod to Bitcoin? After all, no other global payment system other than Bitcoin is decentralized…
That said, the Russian president was probably referring instead to simply not having a dollar-centric monetary system.
What about China and bitcoin?
Stateless Bitcoin is carved out to serve as an international reserve currency and payment system (two-in-one). For two main reasons:
-No nation can censor bitcoin transactions, unlike the SWIFT, Visa or CIPS (China) networks.
-No central bank can create more than 21 million BTC. Conversely, the money supply of the dollar has an exponential trajectory.
The CCP leaders, however, seem uninterested, instead testing things like the CBDC and social credit. Bitcoin also makes it possible to circumvent the capital controls put in place by Beijing.
But China will have to open up one day. China also has the great advantage of having all the major ASIC manufacturers (Bitmain, MicroBT, Canaan, etc.). Will the Middle Kingdom back down?
Attending the Eurasian Economic Forum via video link, Xi Jinping reiterated that “the world is undergoing profound changes unprecedented for a century”. “The historical trend towards multipolarity and economic globalization is irresistible”he launched.
In other words, dedollarization is inevitable. Indeed, hardly a week goes by without two countries announcing that they are trading in their own currencies. This week again, Iran and Indonesia have taken the plunge.
“We believe that sanctions and threats can in no way stop us”said the Iranian president from Jakarta.
Keep a close eye on August’s BRICS summit. Not only because a around twenty countries are jostling at the gate.
But also because it is rumored that one (or more?) new international reserve currency will be offered there. Head over to this article to find out why an international reserve currency is so important.
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