The 300 Billion Rubles Will Soon Be seized

The G7 is meeting this week to reach an agreement aimed at siphoning off the $300 billion belonging to Russia. Need for bitcoin?

Bitcoin in Place of the Petrodollar

Bitcoin could very well serve as an international reserve currency. It would even be desirable. It is no coincidence that many countries are buying gold with no limit.

But for now, the dollar reigns. The main reason being that it is almost indispensable for buying the most important commodity: oil. It is estimated that 20% of the world’s oil is purchased in currencies other than the dollar.

The arrival of Saudi Arabia, the United Arab Emirates, and Iran into the BRICS will certainly strengthen this trend. Especially since the yuan is convertible into gold for oil-exporting countries.

In the meantime, central banks’ reserves are still made up of 57% dollars (in the form of Treasury bonds).

These bonds have the advantage of earning interest. Nevertheless, real yields are constantly negative due to inflation. The exact opposite of Bitcoin, which appreciates at a rate far superior to that of inflation.

And the fact is that inflation shows no sign of slowing down; on the contrary. Bank of America estimates it will climb to 5% before the presidential election.

Under these conditions, why hold American debt in reserve? Many are asking this question in view of the record gold purchases by central banks.

At the forefront is Russia, which saw its foreign exchange reserves (300 billion euros and dollars) frozen overnight. Oil-exporting Arab nations are probably also clenching their fists over American complicity regarding the atrocities in Palestine.

Bitcoin is reaching out to nations wanting to rid themselves of the greenback. What could be better for trading between nations than a currency infinitely rarer than gold, stateless, and that no one can “freeze”?

The $300 Billion That Belonged to the Russians

This treasure is not only “frozen,” but could well be soon seized. The United States and its allies in the G7 are considering it. This is what Treasury Secretary Janet Yellen said on Tuesday.

“I fear that Russia may begin to see signs that the United States and its allies are growing weary or finding it more difficult to find ways to support Ukraine,” she said on the sidelines of the IMF and World Bank spring meetings.

Ukraine needs continuous financial flows that could partly come from the frozen Russian assets, she added. The issue will be discussed this Wednesday at the G7 table.

Several options are being considered. The first is outright seizure. The United States insists that there is a solid basis in international law to seize Russian assets. However, Germany and France have expressed concern.

The second option is to use the income from the interest generated by the frozen assets. These would be used as collateral for loans in favor of Ukraine, according to Reuters.

Whatever happens, this plunder will leave its mark. Indeed, if the world’s leading power can be despoiled in such a way, then no one is safe. Many countries might then consider shedding Western debt.

More and more nations will abandon Western currencies in favor of gold. And since Bitcoin is better than gold, its time will come sooner or later. Countries like El Salvador and Bhutan have already taken the plunge.

Bitcoin is for everyone. Cypherpunks, savers, investment funds, sovereign wealth funds, and central banks!