Russian Central Bank Looking Into Gold-Backed Cryptocurrency
Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!
(Kitco News) - Even though Russia likes to see international payments made in national currencies, the country’s central bank is looking into creating a gold-backed cryptocurrency as a method of payment between countries.
“When it comes to international payments, we will of course consider [the] proposal … of gold-backed cryptocurrency. But, in my opinion, it is more important to advance payments in national currencies,” Russia’s central bank governor Elvira Nabiullina said while speaking at the State Duma on Thursday.
The head of the central bank added that there is a “good dynamic” when it comes to international payments in national currencies, especially within the Eurasian Economic Union.
Russia has been working to diversify away from the U.S. dollar as a payment method as well as an investment avenue.
This is visible via Russia’s increased interest in gold. The country’s central bank bought a total of 71.53 tonnes of gold during the first four months of the year, steadily adding the yellow metal to its reserves.
In March, Russia purchased 18.7 tonnes of gold, which was preceded by the purchase of 37.3 tonnes in January and February.
Russia bringing back the Gold standard ?????? https://t.co/2cOchORtWn— Max Keiser, tweet poet. (@maxkeiser) May 23, 2019
Cryptocurrency, even gold-backed cryptocurrency, however, is still a dicey subject in Russia, with the central bank’s head commenting that Russia’s official position on the matter has not changed.
“We are … against using cryptocurrency in our monetary system. We don’t see cryptocurrency taking on the role of money. In this regard, we are definitely saying no,” Nabiullina added.
Here's a look at top 10 countries with the largest #gold reserves by tonne ... See a drastic % change in #Russia and a massive drop in #Switzerland | @KitcoNewsNOW #kitconews #finance #preciousmetals #markets #economics #mining #investing | https://t.co/ufWmpoQ107 pic.twitter.com/1nMZ4QQFOC— Kitco NEWS (@KitcoNewsNOW) April 22, 2019