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Russia and El Salvador

El Salvador’s currency is USD such I hope we can agree is fiat. In 2021 they added Bitcoin as legal tender but that is not their primary currency.

Russia has “pegged “ the Ruble to gold. I do not think they have enough gold to back all circulating currency but it’s a good move on their part. The west (US) has sanctioned “Russian gold” so it sells on the black market at a discount to the price of gold, or so Kagi search engine tells me.

A good lesson in something that should be fungible made non-fungible.

I suspect we are on the same page, the world will be a better place when Bitcoin starts overtaking fiat currencies! But we have a long way to go!

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Discussion

cryptowolf 2y ago

"I do not think"...

RobOK 🔸 2y ago

Yes i wrote it that way as that is my understanding but not that confident, only researched about 3 minutes! What do you think? (about whether Russia has enough gold to fully back the Rubles?)

cryptowolf 2y ago

Ever since the turn of millenium they have been accumulating gold and dedolaraizing. Nobody can say how much anymore, but it seems the sanctions have not affected them at all except help put another nail int he coffin for the US greenback. They, Russia, are definitely doing something right. Meanwhile in America, the banks are failing....

RobOK 🔸 2y ago

Accoring to Mr. ChatGPT Russia would need 2500 tons of gold to back all Rubles in circulation and estimates put them at 2400 tons in reserve (they probably have more), so I'll give them a yes (although the assumptions to get there are all over the map)