In what appears to be a conflict resolution on the horizon, the governments of the United States and Ukraine are considering seizing Russian funds and cryptocurrencies frozen in Europe, to fund war efforts in Ukraine.
But the Americans are afraid of destabilizing the dollar further!
There is no need for international law in 2023: Will the United States and Europe use frozen funds from Russia?
Since the outbreak of war in Ukraine, international authorities have frozen more than $300 billion belonging to Russia.
While the amount confiscated constitutes half of the gold and foreign exchange reserves of the Russian Central Bank.
The use of these funds is being considered by the governments of the United States and Ukraine.
It appears that the use of these assets will be unprecedented.
It would effectively allow a foreign power to reallocate confiscated central bank assets, something that has never happened in the history of global conflicts.
But Ukraine has been working for months to persuade European and American leaders to allow this maneuver, which will worsen its relationship with its neighbor, Russia!
In any case, it seems that how these huge funds will be used is still a mystery, as it is not clear whether Ukraine wants to use Russian funds to rebuild the country or to arm the army and military groups.
While the two countries in dialogue must agree on an issue that was not previously accepted internationally, it appears that the United States and its allies are considering announcing the use of these funds in February, on the occasion of the second anniversary of the Russian invasion of Ukraine, to absorb hostile reactions!
However, despite the optimism shown by Joe Biden’s government, the measure is controversial.
In addition to its unprecedented nature, it may destabilize the global economy.
We must remember that the system of central bank reserves depends on trust, and this is how Russia was able to store assets in Europe.
Using these frozen assets will completely overturn the system, and central banks will no longer trust the immutability of their assets!
This will also fuel the de-dollarization process, which is making headlines.
The United States and Europe, by giving themselves this right, could see confidence in their currencies disappear.
If the dollar is removed, China will gain a lot of benefits, and its currency, the yuan, will accelerate its expansion.
In addition, such a resolution could provide support for the arguments of Russia, which accuses the United States of waging war, under the guise of defending Ukraine.
