Russia says it will halt foreign currency purchases and launch a digital ruble to keep the currency from spiraling further
Russia says it will halt foreign currency purchases and launch a digital ruble to keep the currency from spiraling further
Russia's currency has plunged to its lowest level against the dollar since the Ukraine invasion, blowing past the Kremlin's "comfort zone."
A digital Ruble means that they don't even need to physically print more bills to further devalue their currency. Now they can just either add to a database column or stick a few more blocks on a block chain. Free money!
Most money is already digital. There isn't a paper bill backing every dollar, far from it. No doubt it was the same in Russia.
Toilet paper demand is going to skyrocket
Also means that a black market is more difficult. If the various LEOs had their way all money would be digital.
As the currency falls people will start rejecting it. It is either
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Inflation, scary levels
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Price controls which will lead to shortages
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Transactions being completed in an illegal currency such as Euros or USD
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End the fucking war, rejoin the human race, and hope that you will he forgiven despite not being worthy of it.
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Digital currency is evil and we should all avoid the "cashless society" that all governments are trying to build.
This is just going to be for more control.
I to one extent agree. It gives governments too much power and in practice rewards already established banks. On the other side it isn't exactly practical for say an airline to buy a new airplane with a truckload of cash.
Another brilliant piece of economic policy by the world's greatest strategic mind. Nothing could possibly go wrong.
Via WSJ
Seems like it dropped during the initial invasion or some time after? Then jumped dramatically and slowly ticking back down.
Manipulating the currency exchange rate is one of the favorite activities of corrupt autocratic governments.
It's a method to give the impression that the full scale invasion did not hurt their economy, hell it even made it better.
However, you can keep up the facade for only so long until the natural forces of the market overpower and break it.
But but buh Comrade Putin is a stalwart Communist. Surely he knows that fiat money is the invention of the Kapitalist pigs! The Soviet Union should do away with money.
t. Lemmygrad user
Bruh no one on Lemmygrad thinks he is a communist.
One cent. Hyperinflation, here we come!
oof size: large
I hope it will be the final straw for the russian collapse
What the hell is going with governments worldwide all of the sudden creating digital currencies all at once? This is like the 4th or 5th country I've seen announcing a digital currency in like a week.
The conspiracy nut in me says that they hope it will be easier to control, especially inflation and deflation. Maybe even have an raiser time tracking people and sanctioning them as needed. Maybe they think it will be easier to clamp down on stuff like money laundering and tax evasion.