In the latest move to reduce their dependence on the precarious US dollar, Russia has suspended the trading of both USD and Euros at the Moscow stock exchange.
The halt was in response to a set of new financial sanctions placed on Russia by the US Treasury Department.
https://x.com/WatcherGuru/status/1800914625846005911
The exchange had already warned that such a move would be made if more sanctions were imposed. Apparently it wasn't a bluff, and now Rubles will be required to trade stocks in Russia.
The dollar index (DXY), which measures the value of the US dollar relative to other fiat currencies, dropped sharply after the news was announced.
https://x.com/NetworksManager/status/1800929758458327525
De-dollarization Accelerates
This news follows closely after another announcement from Putin that the BRICS alliance is indeed working on its own independent payment system that is free from "political pressure, abuse, and external interference", referring to the West's banning of Russia from the international SWIFT payment system.
In related news, China has been selling US debt in exchange for gold in recent months, likely in preparation for the launching of this commodity-backed alternative currency.
Putin also stated in a recent interview with Tucker Carlson that only ~13% of their international trade is done in US dollars now, compared to the 80% it was before 2021.
Moreover, earlier this month Saudi Arabia decided not to renew its 50 year petro-dollar deal with the United States, a contract that was signed in the 70s that required the Saudis to only sell oil for US dollars in exchange for US military protection.
The expiration of the contract means the Saudis can now use alternative currencies, such as the Chinese Yuan or Bitcoin, to sell oil internationally.
These are just some of the most recent plays by BRICS nations to de-dollarize the world economy.
Crypto Adoption Advances
Several comments on X expressed how this move will be bullish for Bitcoin and crypto in general. Less usage of the dollar means it will be have less value, especially relative to cryptocurrencies (which cannot be halted in this way if they're sufficiently decentralized).
Around the same time the Moscow Exchange announcement was made, US presidential candidate Donald Trump posted to Truth Social that "Bitcoin mining may be our last defense against a CBDC", and that "We want all the remaining Bitcoin to be MADE IN THE USA!"
These increasing efforts to de-dollarize the economy by foreign nations and America itself have pushed smaller nations like El Salvador and Argentina to adopt Bitcoin and other cryptocurrencies as legal tender, in preparation for the ultimate demise of the dollar.
This most recent news is all the more reason to be diversified out of the dollar, and other international assets that could be impacted by the collapse of the American currency.
Cryptocurrencies are a borderless asset that can be used not only to protect wealth, but utilize upcoming decentralized compute, mobile, and mapping networks.
If you learned something new from this article, be sure to check out my other posts on crypto and finance here on the HIVE blockchain. You can also follow me on InLeo for more frequent updates.
Until next time...
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Moscow Stock Exchange Image [1]