Sanctioned Russian oligarch urges central bank to embrace Bitcoin


The head of Russia’s central bank has said that the country should consider adopting Bitcoin as a global reserve currency.

The bitcoin shutting down is a problem that has been present for a while. The Russian oligarch, Sergei Pugachev, has urged the central bank to embrace Bitcoin as a currency.

 

After the US Federal Bureau of Investigation searched his residences in Washington and New York, Russian billionaire Oleg Deripaska called on the Russian government to stop ignoring Bitcoin (BTC).

Deripaska said in a Telegram message on Thursday that the Bank of Russia has been “infantile in neglecting the burgeoning cryptocurrency sector,” while the US Treasury Department has been “spending especially in this area.”

The billionaire underlined that cryptocurrencies such as Bitcoin had enormous potential to assist Russia evade US sanctions while simultaneously weakening the currency, saying:

“The United States has long recognized that unregulated digital payments had the potential to undermine not just the efficacy of the whole economic sanctions system, but also the currency as a whole.”

Deripaska explicitly mentioned a US sanctions assessment released by the Treasury Department in October 2021. According to the billionaire, the US government has “essentially acknowledged” that fintech technologies like as cryptocurrencies represent a significant danger to the US currency.

“This implies that the unregulated growth of the cryptocurrency market may put the US Treasury in jeopardy of default owing to its $30 trillion debt,” Deripaska said.

“It’s time to wake up and take cryptocurrencies seriously,” says the author. “There are still a lot of individuals ready to fight in the elderly American establishment,” he said.

The US Treasury released a booklet last Friday that provides advice for cryptocurrency businesses on how to ensure that they are complying with US sanctions. The Office of Foreign Assets Control (OFAC) penalties “apply equally to transactions using virtual currencies and those involving conventional fiat currencies,” according to the paper.

“Members of the virtual currency sector must ensure that they do not participate in transactions banned by OFAC sanctions, either directly or indirectly, such as interactions with blocked people or property, or participating in prohibited trade- or investment-related activities.”

In the long run, Russia wants to replace US dollar reserves with digital assets.

The oligarch’s new comments come after FBI investigators searched his residences in Washington and New York City on Tuesday. The searches were allegedly carried out on the basis of two court orders linked to US sanctions, according to a Deripaska spokesman. Deripaska was sanctioned by the US in 2018 because to his alleged strong connections to Russian President Vladimir Putin.

The Russian billionaire has already chastised the Russian central bank for refusing to accept Bitcoin. The billionaire said in June that Russia needs to go into crypto in order to create a “genuine financial tool allowing independence in international trade settlements.”

The tinkoff crypto is a Russian oligarch who has urged the central bank to embrace Bitcoin.

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