Earlier this week I wrote an article about Venezuela starting off the list of countries that will be creating crypto-currencies with oil and gold. I forecasted that China will follow and most likely back theirs with gold. Adding to that forecast I would like to include Russia who is currently working on their crypto-ruble.
Putin has ordered to begin work on this crypto-currency immediately. His economic advisor Sergei Glazev made the following comment about its intended use:
“This instrument suits us very well for sensitive activity on behalf of the state. We can settle accounts with our >counterparties all over the world with no regard for sanctions.” [1]
This is most likely part of a much bigger project that Russia, China, and other trade partners have been developing. Dr. Jim Willie discusses in an article the developing bilateral trade agreements between BRICS countries and their trade partners:
(above chart to replace below)
“Bilateral Oil for RMB Sale + Shanghai Gold Exchange = Gold Trade Note
This triangle is precisely what China and Russia are doing now. Russian oil & gas is being sold for Chinese Yuan, and then Yuan is traded for Gold at the Shanghai Gold Exchange. The trade is not complex at all. Oil for RMB for Gold, creating a transaction payment in gold terms. The part unclear is posted margin to confirm and seal the transaction. The immediate implication is that the Chinese RMB will have a quasi-gold link.” [2]
With crypto-currencies as an infrastructure to conduct transactions, the “Gold Trade Note” that Jim is talking about can develop by circumventing both US/UN sanctions and bypassing the US controlled SWIFT (Society for Worldwide Interbank Financial Telecommunication) payment system.
Glazev also mentioned that the crypto-ruble would be a digital copy of its current fiat currency, “but its circulation would be restricted in a certain way [gold and oil]”
[Emphasis added]
Watch for Russia’s crypto-currency to become exchangeable for gold and oil.
Notes
[1] https://www.ccn.com/putin-orders-work-cryptoruble-escape-western-sanctions/
[2] http://www.marketoracle.co.uk/Article58181.html