"Putin Advisor Warns U.S. Aims to Reshape Finance With Crypto and Gold"

An advisor to Russian President Vladimir Putin has raised concerns that the United States may be leveraging cryptocurrencies and gold to alleviate its massive debt burden, a strategy he described as an attempt to "rewrite the rules" of the global financial system. Anton Kobyakov, a senior figure at the Eastern Economic Forum in Vladivostok, stated that the U.S. is using digital assets and gold as alternatives to the traditional global currency system, with the aim of addressing the declining trust in the dollar [1]. The U.S. national debt currently stands at $37.43 trillion, a figure that has surged significantly since the early 1980s [2].

Kobyakov emphasized that the U.S. is likely to transfer its debt into stablecoins, a process that would allow it to devalue the liabilities and effectively start over financially. He compared this strategy to actions taken during the 1930s and 1970s, when the U.S. addressed economic challenges at the expense of global markets [2]. While Kobyakov did not specify how this devaluation mechanism would function, the idea of using stablecoins to manage debt has already gained traction in U.S. legislative discussions.

In July, President Donald Trump signed the GENIUS Act, a law that establishes a regulatory framework for the issuance and trading of stablecoins within the U.S. This development aligns with the broader U.S. strategy to maintain the dollar's dominance in global finance. Treasury Secretary Scott Bessent has previously stated that stablecoins could help reinforce U.S. dollar supremacy rather than weaken it [2]. The move is also seen as a response to growing competition from China, with former House Speaker Paul Ryan noting that dollar-backed stablecoins could increase demand for U.S. debt instruments and reduce the risk of debt market failures.

Meanwhile, Russia is also exploring the use of stablecoins as part of its economic strategy. In June, Russian state media reported the development of a ruble-backed stablecoin, A7A5, set to launch on the Tron blockchain. This move appears to be aimed at reducing dependence on U.S. dollar-based stablecoins like Tether (USDT), which Russia has used in oil transactions with China and India. Despite a 2022 ban on crypto payments, Russia has recently shown increased openness to the sector, allowing financial institutions to offer crypto-based products to accredited investors as of May [2].

The debate over the role of stablecoins and cryptocurrencies in global finance reflects broader concerns about the future of the dollar and the potential for digital assets to reshape the international monetary system. As both the U.S. and Russia explore ways to integrate crypto into their economic strategies, the implications for global markets remain under close scrutiny.

Source:

[1] Putin Advisor Accuses US of Using Crypto, Gold to Escape (https://finance.yahoo.com/news/putin-advisor-accuses-us-using-214522644.html)

[2] Putin Advisor Says US Is Using Stablecoins To Devalue Its (https://cointelegraph.com/news/us-is-using-stablecoins-devalue-debt-putin-advisor)