Russian Economist: ‘US Sanctions Will Undermine Dollar & Boost Digital Ruble’

Russian economist: “US sanctions will undermine the dollar and support the digital ruble”

Russian economist:

Source: Cryptonews.com

A leading Russian economist has argued that US sanctions will ultimately undermine the US dollar’s role in the global economy – and help cross-border adoption of the digital ruble.

According to News.ru, the comments came from Alexander Razuvaev, a member of the Supervisory Board of the Guild of Financial Analysts and Risk Managers.

Razuvaev said Washington’s “actions against Russia” in response to the war in Ukraine will “undermine global confidence in the US currency.”

Instead, Russian business partners may well turn to CBDC as a dollar alternative, Razuvaev said.

The economist said this scenario would likely accelerate if the United States “for example” “transfers frozen Russian assets to Ukraine.” Razuvaev said:

“Unfortunately, the Russian Federation is not such a big part of the world economy. But as we can see, China is releasing US bonds and paying for Saudi oil in yuan. In a few years, Turkey and Azerbaijan may start trading using the digital ruble.

Could US dollar woes lead to joy in Russia’s digital ruble?


Razuvaev believed that it was now “more important than ever” for Moscow to “secure foreign trade”.

And while he argued that much of Russia’s trade with China and Middle Eastern countries should be conducted in yuan and Emirati dirhams, Russia’s CBDC would also play an important role.

The economist said that trade “in the CIS” will soon be conducted “using the digital ruble.”

The CIS, or Commonwealth of Independent States, is a collection of former Soviet nations that remain largely aligned with Moscow.

Key members such as Belarus and Kazakhstan began accelerating their CBDC projects in mid-2023.

The states made their move just as Russia’s central bank launched its own pilot project.

Top Russian lawmakers have also talked about the possible integration of the digital yuan and the digital ruble.

However, Beijing remained cautious on the matter, preferring to pilot its first cross-border e-CNY projects in Hong Kong.

Razuvaev argued that the dollar was likely to remain the world’s reserve currency. But he added:

“American actions have undermined the authority of the dollar. We inflicted the biggest blows on the dollar on ourselves. And if that is indeed the case, it will be reflected in gold prices, which could rise sharply.”

Focusing on Washington, the economist said freezing the Russian central bank’s assets has proven counterproductive. He said:

“I think the United States was counting on the destruction of the Russian economy within three to four months. She originally wanted to return the property. And now the White House doesn’t know what to do. The Americans themselves planted a bomb under the dollar.”

Elvira Nabiullina, Governor of the Russian Central Bank, spoke at the end of 2023.
Elvira Nabiullina, Governor of the Central Bank of Russia, spoke at the end of 2023. (Source: Bank of Russia/YouTube)

The U.S. and its allies froze sovereign Russian assets worth around $300 billion in Western countries just after the outbreak of war in 2022.

Some lawmakers urged the EU and others to hand over the assets to Ukraine, but others said there was no legal mechanism for such a move.

In 2021, politicians including Foreign Minister Sergei Lavrov began to claim that the digital ruble would help Moscow cleanse its economy of the dollar.

Roughly 600 Russians, including politicians and bank employees, are currently judging Russia’s CBDC. The pilot project is expected to expand early this year.

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