The hefty trade sanctions levied by the US against Russia has forced the latter country to consider alternatives and there are talks that Russia is planning to consider oil backed cryptocurrency to replace USD. The country is planning to use the digital currency for trading oil with oil exporters. The government is calling out the global political instability and unpredictability a major reason why national currency will not be a reliable option idea going forward.
Igor Yusufov, head of oil and gas investment company Energia called out the use of cryptocurrency will reduce and limit trade restrictions and vulnerabilities involved with national currency. Currently a team headed by Yusufov is a proof of concept of a Blockchain platform where the oil backed cryptocurrency will be used. Time will tell if Russia’s project will be a success.