Originally published at: Russia Moves with Bitcoin & CBDCs, Raises the Soviet Flag – Peak Prosperity
Geopolitics & Economy
In a legislative move, Russian lawmakers have passed a bill permitting businesses to use Bitcoin and other cryptocurrencies in international trade, reportedly aiming to circumvent Western sanctions imposed following the invasion of Ukraine. This new law, expected to take effect in September, seeks to address delays in international payments, particularly with key trading partners like China, India, and the UAE. Central bank Governor Elvira Nabiullina announced that the first cryptocurrency transactions will occur before the year’s end, with an “experimental” infrastructure being established for these payments. Despite efforts to shift to trading partners’ currencies and develop an alternative BRICS payment system, many transactions still rely on dollars and euros via the SWIFT system, risking secondary sanctions. This decision by Russian lawmakers is intended to mitigate the economic challenges posed by sanctions and ensure smoother international trade operations.
In a related development, Russia is advancing its digital ruble project, with real-user tests starting on April 1st and full implementation expected by July. This move aims to bypass sanctions and SWIFT by using cryptocurrency for foreign transactions. From November 2024, Russia will allow crypto mining under strict government oversight, with the Bank of Russia managing mining operations and selecting participants. The digital ruble, managed by the Russian central bank, will feature unique codes for each unit, allowing transfers between digital wallets under government supervision. This shift to a Central Bank Digital Currency (CBDC) was reportedly accelerated by Russia’s removal from SWIFT, with expectations that several countries will introduce their own within 5-7 years, potentially eliminating the need for SWIFT.
Meanwhile, in the Arctic, the Russian state-owned mining company Trust Arktikugol recently hoisted the Soviet flag in Svalbard, a Norwegian archipelago. Despite being part of Norway’s sovereign territory, Svalbard has seen symbolic gestures from Russia, including the raising of Soviet flags in Barentsburg and Pyramiden. The CEO of Trust Arktikugol, Ildar Neverov, emphasized the revival of Soviet traditions. This act is part of a broader Russian interest in Svalbard, where Norwegians and Russians have coexisted for decades. Recently, the Soviet flag replaced the Norwegian flag on Pyramiden’s coal-loading crane. This move has heightened tensions, especially as Russia labels Norway an “unfriendly country” amid ongoing conflicts in Ukraine. Norway, a NATO member, has largely refrained from reacting to these acts, but concerns are growing about Russian intentions in Svalbard.
In Japan, the Bank of Japan (BOJ) has raised its policy rate by 25 basis points to 0.25%, a shift from its previous negative rate of -0.1%. Despite this increase, the rate remains below Japan’s core CPI of 2.6%, resulting in a “real” policy rate of -2.35%. BOJ Governor Kazuo Ueda hinted at potential future rate hikes if economic conditions improve. Additionally, the BOJ has initiated Quantitative Tightening (QT), planning to gradually reduce its holdings of Japanese Government Bonds (JGBs). These measures aim to stabilize the yen, which has seen some recovery from its low point of ¥162 to the USD in July to ¥150 to the USD recently.
In the US corporate world, Return to Office (RTO) orders are reportedly being used by companies as a tactic to get employees to quit. Nearly two in five managers, directors, and executives believe their organization enacted layoffs in the last year because fewer employees than expected quit during their RTO. By using RTO mandates as a workforce reduction tactic, companies are reportedly losing talent and morale among their employees. Nearly half of the employees who have experienced RTO report significant talent loss within their organizations. Continued unemployment claims have surged in the last two months, reaching the highest level since November 2021.
Health
Researchers have discovered a new gene editing tool that could surpass CRISPR. Known for its ability to edit genes by breaking DNA strands, CRISPR can be imprecise and is limited to short DNA sequences. Researchers are now exploring “jumping genes” found in bacteria, which can move within genomes and between individuals without breaking DNA strands, potentially making the process safer and more precise. Two independent studies have identified a new gene editing mechanism in these jumping genes, specifically in the IS110 family. This method, referred to as bridge editing or seekRNA, uses RNA sequences to guide the insertion, excision, and inversion of DNA without causing breaks. While promising, this new tool has only been tested in bacteria, and researchers aim to adapt it for use in mammalian cells.
Sources
Russia Greenlights Bitcoin for International Trade to Dodge Sanctions
Russian lawmakers have passed a bill permitting businesses to use Bitcoin and other cryptocurrencies in international trade, according to a report by Reuters.
Source | Submitted by AaronMcKeon
Yellen’s Treasury Tactic: Echoes of Clinton’s Short-Term Debt Strategy
Yellen is engaging in the Clinton version of QE by shifting the national debt short-term to reduce interest costs.
Source | Submitted by rhollenb
Russian State Firm Raises Soviet Flag in Norway’s Svalbard, Reigniting Geopolitical Tensions
In a provocative move, the Russian state-owned mining company Trust Arktikugol recently hoisted the Soviet flag in Svalbard, a Norwegian archipelago in the Arctic Ocean.
Source | Submitted by preppy
Bank of Japan’s Tepid Rate Hike and QT: A Slow March to Stabilize the Yen
The “real” policy rate is massively negative, with the new policy rate of 0.25% far below Core CPI of 2.6%.
Source | Submitted by rhollenb
New Gene Editing Tool Promises Precision Without DNA Breaks, Scientists Say
“Bridge recombination can universally modify genetic material through sequence-specific insertion, excision, inversion, and more, enabling a word processor for the living genome beyond CRISPR,” said Berkeley’s Patrick Hsu, a senior author of one of the studies and Arc Institute core investigator, in a press release.
Source | Submitted by Barbara
Russia’s Digital Ruble: Real-World Testing Begins April 1st Amid Sanction Evasion Strategy
Russian digital Ruble project reaches a critical stage; tests with real users to begin on April 1st
Source | Submitted by rhollenb
Executives Reveal RTO Mandates Are Strategic Layoff Tactics
Return to Office (RTO) orders are one ploy companies use to get employees to quit.
Source | Submitted by AaronMcKeon