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Russian Official Proposes Replacing the Dollar With Crypto for Arms Deals

Russian Official Proposes Replacing the Dollar With Crypto for Arms Deals

Russian official Vladimir Gutenev, Vice Chairman of the Gosduma Committee of Economic Strategy, has initiated a proposal to abandon the use of the U.S. dollar in domestic arms deals. He wants to return Russia to gold and usher in a new era of transacting in cryptocurrencies, largely to show the Americans that sanctions are not effective when dealing with Russia. Besides going crypto in international transactions, he also proposed sending some tactical nuclear missiles to Syria.

Also see: Bitcoin Hits $7,000 Again as ‘Risk-On’ May Be Back On

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The United States Has ‘Crossed The Red Line’

In new comments, Vice Chairman Gutenev said the United States has “crossed the red line” with its liberal doses of biting sanctions, arguing that American officials were imposing sanctions on countries that buy Russian weapons.

He suggested the ensuing tension could escalate into a range of sanctions that block further civilian trade. If that scenario occurs, he claims, the Russian government must rely on gold and crypto. Many Russian enterprises already notably resorted to cryptocurrency during the recent World Cup because of U.S.-led sanctions.

For civilian trade, Gutenev proposed the use of an unspecified cryptocurrency backed by gold, and outlined his idea of working toward a trade bloc based around the digital asset that would establish further trading of goods, food, and materials with India, China, and other countries. According to Gutenev, these nations would happily support the initiative. Having said that, Russia wasn’t entirely happy to be paid in Venezuela’s Petro for a shipment of truck parts. Said nations might not clamor for a Russian crypto, either.

As for arms trading, he advised the use gold or cryptocurrencies and avoid the use of the U.S. dollar. He also grimly recommended to put on hold a range of international agreements on weapons of mass destruction and suggested the Russian government should send nuclear weapons to a number of countries, including Syria. He said positioning nukes across the planet is important in delivering a message to the United Nations and the U.S.

No shortage of ideas, eh Gutenev? Nukes, crypto, and gold or bust, he thinks.

Crypto Sentiment Shared by Other Officials

This is not the first time officials have expressed an interest in crypto-based international trade. In March, presidential advisor Sergej Glazyev, commented that the creation of a national cryptocurrency may increase the transparency of state procurements and protect the economy from western sanctions. Per Glazyev:

“In a sphere of monetary circulation a true revolution have started! A creation of a new kind of money happens not so often, and always means a new era of not only monetary development, but economic evolution in general… The main difference of digital money is not the fact that they appear to be digital, but the fact that they exist without banks.”

In June, Russian senator Sergej Kalashnikov argued that many Eastern and Asian countries seek a neutral currency for international trade, and cryptocurrencies may accordingly offer a peaceful and democratic solution. Additionally, back in 2017, Sberbank CEO German Gref said that bitcoin and blockchains “will destroy banks.”

Hopefully, it will be bitcoin destroying banks without Syrian-based nuclear weapons — using bits instead of weapons.

Will bitcoin help Russia bust sanctions? Sound off in the comments section below.

Images by Jeff Fawkes, Yandex

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