Ministry of Foreign Affairs in Russia Believes Crypto Is A Crucial Element for Settlements

Sergei Lavrov, the Minister in charge of the Russian Foreign Ministry, revealed his expectations regarding the future of digital assets and their significant importance. He opined that digital assets are essential elements and can be utilized for the settlement of international transactions. He called crypto “the future” and said that it is a matter of time when the whole world would rely on digitalization.

Sergi Lavrov, the Minister for Russian Foreign Ministry commented on the essentiality and significance of cryptocurrencies in the future. He was of the view that in the future, crypto has a significant role to play in the global financials and economies. However, he thinks that at the present time, the Russian Government should utilize crypto for international settlements.

Lavrov was participating in the forum called Primakov Readings where he made mention of crypto. He was positive about the utilization of digital assets for the settlement of international transactions and debts in between the global countries. He emphasized that in his opinion the time is nearing when crypto will be the major player playing a significant part at the global level. He believes that settling transactions and debts would heavily rely upon crypto in the near future.

Russia is planning to amend its approach towards international payments and the settlement of debts. For this purpose, even the country had recently quitted utilizing the US Dollar currency in global transactions. However, the reasons for ignoring US Dollar are primary others but they subsequently merged with the new initiative of Russia’s foreign policy. In this spirit, Lavrov informed that his Ministry is exploring the possibility of crypto utilization in matters of bilateral trade and commerce.

He was of the further opinion that Russia has been relying upon several fiats for the settlement of its debts with other countries. However, when settling payments of trade and commerce between ally states, Russia relies on the national currency. There is a space for digital assets to come in and become part of the country’s trade payments towards global trade partners.

But whether Lavrov’s proposal would be accepted will be seen in times to come. However, one thing is for sure that Russia is continuously de-dollarizing the infrastructure of global payments as well as investments. In the most recent initiatives taken by the Russian Government, de-dollarization has taken place in the country’s biggest Wealth Fund. The world said that it was a political move that would jolt the Biden Administration in the US.

Similarly, the Russian IT Ministry is also working towards the introduction of digitalized Rubal – the national currency of Russia. However, the project is still working under progress and it is expected that the prototype will be launched before the end of 2021. Already China and Russia are in talks over the acceptance of their official digital currencies for settlement of future payments.