The
CryptoRouble is coming!
Russia is
about to become the first state that will issue its own
CryptoCurrency. While Vladimir Putin implied that CryptoRouble comes
as a natural attempt by Russia to participate in rapid developments
in the sector of monetary and commercial transactions, it is quite
probable that there are other reasons too. At the time where Russia
struggles to overcome continuous sanctions by the West and BRICS
seek complete independence from the Western monetary monopoly, the
move could contribute significantly towards the achievement of both of these
goals.
As
Mintpressnews
reported:
Russian
President Vladimir Putin has made history today, when he endorsed the
creation of a soon to be unveiled CryptoRouble, the world’s first
cryptocurrency endorsed by a state. [...] The CryptoRouble is being
worked on at the moment and should be available soon, although a
precise timeline is not yet available.
[...]
While
advocates of autonomous cryptocurrency exchange will almost certainly
adopt the traditional ultra-libertarian line that any government
regulation into cryptocurrencies makes them scarcely different from
using traditional currencies in the online domain (Paypal for
example), long time advocates of cryptocurrency in the retail and
wholesale sector will almost certainly look with interest to this new
development. [...] if in the eyes of the Russian government, a
CryptoRouble is as legitimate a currency as the Rouble, it will allow
wholesalers, retailers and possibly even independent financial
traders to use the CryptoRouble to avoid the sanctions against
Russian banks which their own anti-libertarian western governments
have imposed. Additionally, if the CryptoRouble becomes easily
convertible to popular western originated cryptocurrencies such as
Bitcoin, it would solve the problem of Bitcoin users being ‘shut
out’ of the Russian market. All one would need to do in order to
engage in transactions with Russian businesses using a cryptowallet,
would be to digitally exchange one’s Bitcoins (or any other
existing cryptocurrency) for a desired amount of CryptoRoubles. The
aforementioned process would generally take the same amount of time
or even less than a traditional online bank transfer.
[...]
During
September’s BRICS Summit in Xiamen, there was a great deal of
discussion regarding the establishment of a cryptocurrency for the
BRICS nations (Brazil, Russia, India, China South Africa) and their
partners. Such a coin would have all of the advantages of the
CryptoRouble with the added benefit of instant legitimacy and even
desirability across some of the world’s most dynamic and growing
economies. It could also facilitate easier money transfers between
BRICS members. This would be particularly helpful for Chinese
businessmen who often have trouble getting large sums of Yuan out of
the country in single transactions. A BRICSCoin, if based on the
Russian security net could plausibly alleviate similar existing
Chinese concerns about cryptocurrencies. As China has begun trading
oil futures contracts in Yuan which can be converted to gold at the
Shanghai and Hong Kong gold exchanges, one could foreseeably be
looking at a BRICScoin that would effectively be backed by gold, in
certain instances.
The move may
help Russia avoid the hard sanctions imposed by the West through the
'back door' of the CryptoCurrency market. Russia may access Western
markets in the future through the rapidly increasing number of
individuals who will use Bitcoin and other CryptoCurrencies.
Previously,
we had the first serious attack against Bitcoin by the Western
banking cartel through JPMorgan CEO Jamie Dimon, which was a serious
indication that Bitcoin and other CryptoCurrencies could become a
real threat against cartel's monetary monopoly, which gives
significant power to the mega-banks of the West, even up to the point
to 'design'
major financial crises.
As has been
described, Dimon's attack could be related to a recent
statement made by the Head of the Russian Direct
Investment Fund (RDIF), Kirill Dmitriev, that the BRICS are
considering to create their own CryptoCurrency for the purposes of
global commerce.
Such a move
could help BRICS to decouple economies from the Western neoliberal
monetary monopoly, even faster. With the technology of more powerful
computers in close future that could 'mine' CryptoCurrencies at much
faster rate, the number of people who will choose to abandon
traditional currencies may rise rapidly. Those who will set-up such a
de-centralized financial system, will gain a great advantage against
the obsolete system of traditional currencies controlled by central
banks.
Even entire
countries may choose to jump into the new system, in order to escape
from the monopoly of the Western hard currencies. The most
characteristic example is Greece. Many in Greece are considering
Bitcoin and other alternative currencies as a solution against the
monetary dictatorship of the ECB.
Indeed,
Russia seems that is moving fast towards the implementation of such
plans.
However,
there are currently some political barriers against the prospect of a
BRICS CryptoCurrency in the close future. These are related mainly to
Brazil and the constitutional coup against former president Dilma
Rousseff. Right-wing, Pro-Washington Michel Temer is expected to
sabotage from inside such efforts by the BRICS and this will prove
further that the US is terrified with the prospect of a BRICS
CryptoCurrency.
Petrodollar
already struggles to maintain its dominance as many countries have
chosen to 'revolt' against it and proceed in major transactions with
domestic currencies, or suggest such an alternative. Latest
example, Venezuela.
As the BRICS
bloc grows economically quite fast, the prospect of a BRICS
CryptoCurrency will contribute to the quicker demolition of dollar domination. There is a deeper reason for which the US empire
is terrified in such a case. Since the early 70s with the abolition
of the gold standard, dollar became the dominant currency in global
scale. This fact permitted the US financial-military-industrial
complex, expressed by the neocon/neoliberal ideology, to design
economic and military wars in every corner of the planet to maximize
its power and profits. All it needed was just machines printing
dollars. The rest was the easy part.
Therefore,
the prospect of a global economy flooded with decentralized
CryptoCurrencies and other CryptoCurrencies issued by a major rival
bloc, will become the worst nightmare for the US empire and its
Western allies.
As one can
understand, the CryptoMarket anarchists have nothing to fear. A
CryptoCurrency issued by BRICS, or some member-states, or even other
countries separately, will not be a threat for the decentralized
nature of the rest of CryptoCurrencies. On the contrary, it will give
them a significantly wider field and greater opportunities for all
kinds of transactions inside a dynamically growing economic bloc
which, if nothing else, does not rely on wars and destruction to
maintain its dominance.
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