Russia's largest bank Sber - formerly known as Sberbank - has announced the first issuance of gold-backed digital financial assets (DFA). The bank sees DFA as a "great alternative" to investments in the era of de-dollarization.
ATTENTION: issuance of digital financial assets backed by gold!
translated by a translator
On December 26, Sber announced its first issue of gold-backed DFAs. Diversified metals retailer and producer Solfer has become the first investor to acquire the issued assets. Gold-backed DFAs are certificated monetary rights whose price and volume depend on gold prices.
Here it is clearly visible what paths the excellent governor Nabiullin's thinking took
And it will "kill two birds with one stone". A better currency than the ruble in Russia or the dollar in the USA. Secondly, it can be used for payment ( in the future, for now only investment ), it is not affected by possible hyperinflation or deflation, and at the same time it cannot be physically exported from Russia without permission, so it is better for the state than Japan's debt, when they pay it to themselves . The connection of the blockchain with this currency and gold is perhaps comparable to the distribution of electricity for Russia. So the Russians can store money without worry, unlike us. And inflation will be stolen from them. We'll see what the interest is.
The first deputy chairman of the executive board at Sber, Alexander Vedyakhin, claims that these types of DFAs are an alternative to traditional investments amid de-dollarization caused by international financial sanctions imposed on Russia as a result of its invasion of Ukraine:
"We expect the number of corporate clients on our platform to grow rapidly and we plan to expand the product line of digital financial assets."
While the current DFA legislation came into effect in 2020, in July 2022 Russian President Vladimir Putin signed a law banning digital financial assets as a payment method.
Related: Russian bank Sber integrates Metamask into its blockchain platform
In June, a subsidiary of another Russian state-owned bank, VTB Factoring, announced its first major deal in digital financial assets. As part of the transaction, the bank's subsidiary acquired a tokenized debt pool of the engineering company Metrowagonmash issued through the Lighthouse fintech platform. Sber tested its first deal involving DFA later in July, issuing three months' worth of assets worth 1 billion rubles (about $14.5 million as of press time).
It is difficult to lean towards something whose essence we do not know. There are three theories around the world why the war in Ukraine started. If we leave out the terrible human destinies, the evaluation of which only the future will show, here is one of the theories of economists, that the insane American indebtedness and the huge mineral wealth of Russia are as incompatible as the desire to get gold in the Klondike River in the Canadian Yukon for the United States. Subsequently, Putin was looking for ways to prevent looting with Nabiullina. And swap trades, a digital currency blockchain linked to gold, and the ruble linked to the price of oil are the result of efforts to avoid Libya-like disruption over black gold.
And technical: this is not consent to a complete digital currency. The physical one must remain. A gold standard covered and linked to digital currency and gold on the blockchain should stabilize the state and a currency guarded by a central bank run alongside it, which will often even be in opposition. Which, even in theory, should prevent the fear of another "Black Friday", in fact a Thursday, and forever prevent the panic from which the USA eventually gave birth to Hitler and the Second World War.
Whether this is the right way and whether this theory is fundamental will be judged by the next generation. And what is happening around can be compared to the massacres in the fight for gold on the banks of the Klondike River in the legendary Yukon. And the fury on Wall Street is logical. The Russians are increasing their lead.
PS Explanation. The US has a digital currency as well. But based on the dollar, not the gold standard. So here's what happened last year: The controversial digital currency terraUSD, which its creators plan to peg the U.S. dollar 1:1, continued its slide on Wednesday, falling to 30 cents. It just behaves like an airplane or Bitcoin. Therefore, the Russians have a huge advantage.