Has Yuan Become Russia’s New Dollar?

Disconnecting Russia from world finance could thus create an unwanted side effect for the west, the birth of a new global economic system based upon the Chinese yuan.

One rouble now buys less than one US cent, causing ordinary Russians to flock to stores of value such as gold and bitcoin (BTC-USD) to protect themselves from the fallout.

As Putin’s armoured divisions roll closer to Kyiv, his country’s economy rolls closer to the abyss, and speculation has grown that Moscow will resort to using cryptocurrencies as a financial back-channel.

However, there is simply not enough volume and liquidity within crypto markets to offset the disruption that sanctions will have on the Russian economy.

This leaves the Kremlin with another option: to use the Chinese yuan and Beijing’s CIPS international payment system for cross border trade.

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