A senior Russian lawmaker has said he believes a cryptocurrency backed by gold may be the right course of action to avoid Western-imposed sanctions on arms exports.
Vladimir Gutenev, first deputy head of the economic policy Committee at the State Duma, has called on Moscow to suspend all shared treaties with the US including the non-proliferation of missile technologies and to adopt cryptocurrency in order to avoid USD-based commerce. He called this an ”asymmetric response to the US”.
Speaking to local news outlet TASS, Gutenev claimed that the US was attempting to block Russian weaponry and civilian goods, and the way around this could be found through conducting transactions in gold-backed cryptocurrencies. He added, ”I’m sure that this will be a very interesting option for China, India, and other states as well.”
While Gutenev did not point to any digital currency in particular, the Royal Mint Gold (RMG) launched by the British Royal Mint earlier this year is the most prominently recognized cryptocurrency with a value linked directly to gold. Backed by USD 1 billion in gold bars stored in the Royal Mint’s vaults, one RMG is right now priced equivalent to one gram of gold.
Russia may have alternative cryptocurrency options, however, as President Vladamir Putin is rumored to be developing a national cryptocurrency in Moscow reportedly being dubbed the cryptoruble, even having apparently met with Vitalik Buterin to discuss the topic. Putin denied any claims of a national cryptocurrency in June this year, however.
Gutenev advocated for the Kremlin to withdraw from US treaties as the government discusses new sanctions against Russia. A discussion in the US of the proposed sanctions was triggered in April after Russia’s involvement in the Syrian conflict, followed by America’s sanctioning of six Russian entities due to accusations of violating its weapons of mass destruction non-proliferation treaty.
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