Digital payment tools to reduce reliance on USD, Euro: Russian Deputy
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During a recent BRICS summit, Russia's finance minister discussed with his counterparts the benefit of switching to digital payment tools in trade to decrease reliance of their economies on the US dollar and euro.
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Undated photo of the Russian Mir Payment System Logo (Sputnik)
Russia and Venezuela are exploring avenues for the use of digital payment mechanisms in trade to secure transactions against Western interference, Russian Deputy Prime Minister and Minister of Trade Denis Manturov said Monday.
"[Russian payment system] Mir is one of the alternatives, enabling both our and the Venezuelan people to make daily payments with the use of these cards. In addition to the population, payments should be made possible between businesses, commercial entities," Manturov told the Knowledge.First education forum, when asked about the ways in which Russia is cooperating with Venezuela.
He pointed out that during a recent BRICS summit, Russia's finance minister discussed with his counterparts the benefit of switching to digital payment tools in trade to decrease reliance of their economies on the US dollar and euro.
"This could encourage other countries to use their currencies and ensure maximum security of transactions against attempts to hinder this cooperation by the US and Europe," the Russian official said.
Read more: Venezuela increasingly becoming immune to US sanctions
Trust in the US dollar as a reserve currency has recently been waning due to increased fears of US sanctions.
The IMF warned last month that the unlocking of Russian assets will trigger worldwide loss of confidence in the greenback.
But the US believes that its economy is too strong to lose financial hegemony.
"There is nothing that we have seen that suggests that there is any significant move to de-dollarization that we proceed in the global financial system," US Treasury official Brian Nelson said in February.
"My view about this question of whether the use of sanctions is going to lead to some challenges to the dollar is that the thing that's going to matter to the dollar's role in the global economy is the strength of our economy ultimately," US Deputy Treasury Secretary Wally Adeyemo said in February.
"I feel good about the fact that the dollar, America's financial system, is going to remain dominant in the world, and we're going to make sure that we take sanctions as a tool to be used in a way that is targeted and multilateral in order to make sure that they are effective," the Treasury official added.
