IMF Deputy Director Gita Gopinath spoke about the sanctions imposed on Russia and their consequences. The adoption and use of cryptocurrencies, which gained a different perspective after the Russian invasion of Ukraine, continues to increase.
Stating that they are aware of the increasing interest in the crypto money industry, IMF Deputy Director Gita Gopinath stated that the use of digital money in global trade has increased due to the war between the two countries and the economic sanctions imposed on Russia.
The Russia-Ukraine war will increase the use of digital finance such as cryptocurrencies and digital currencies of central banks, as well as diversify the reserves of central banks.
Gopinath believes that sanctions against Russia for its invasion of Ukraine will reduce the dominance of the US dollar while increasing the adoption of digital currencies.
US Dollar Dominance May Fade
Pointing out that the sanctions imposed on Russia threaten to lose the US dollar's position as the reserve currency, the IMF deputy chief said that some countries are already negotiating to use different currencies in international trade.
The US dollar maintains its position as the main global currency even in this war environment. However, this position seems likely to weaken gradually.
Some countries are already negotiating to use different currencies for international trade.
Finally, noting that the influence of the US dollar has already decreased in the last two decades, IMF Deputy Director Gopinath stated that the share of the US dollar in international reserves has decreased from 70% to 60%.
Gopinath added that international trade, especially the Australian dollar and the Chinese yuan, has made progress.