Pantera Capital: Sanctions against Russia will force the country to switch to BTC
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It will be tempting for both the state and ordinary citizens around the world to maintain control of their money in the light of the sanctions imposed on Russia. According to Panther Capital CEO Dan Morehead, countries may begin building their own foreign exchange reserve in BTC.
Pantera Capital’s CEO and Chief Investment Officer wrote about this in a recent newsletter.
Countries may soon begin to switch to BTC as a currency / cloud reserve. The ability to hold one’s own foreign exchange reserve will become very attractive to many countries and individuals.
He added that BTC is attractive to ordinary citizens because they want to “protect themselves from the financial consequences of their government / dictator’s decision.”
Morehead added that recent Western sanctions against Russia have already shown that foreign exchange reserves held in fiat money controlled by other countries are not as secure as previously thought.
The finding came after Russia’s Central Bank was cut off from most of its $ 630 billion foreign exchange reserves.
This caused a decline in the value of the Russian ruble, which subsequently forced the central bank to raise the key interest rate to 20%. In addition, the shares of large Russian companies traded abroad fell sharply, while the domestic Russian stock market is simply closed.
On Tuesday, there was a report that a bipartisan group of American senators would present a bill aimed at preventing Russia from selling physical gold, which it holds as part of its reserves.
The bill applied so-called “secondary sanctions” to U.S. entities that trade in gold or transport gold from the Russian central bank’s reserves, as well as to entities that allow the fusion or electronic sale of gold in Russia.
The proposed initiative is to be included in a general law on spending to be approved this Friday.
Russia ranks fifth in the world in terms of the gold reserve, after the United States, Germany, Italy and France. According to the World Gold Council, Russia’s central bank holds 2301 tons of the precious metal.
