Vladimir Putin has shaken up the status quo with a unique and undoubtedly brilliant take on things, in this case, the cryptocurrency market.
The president of the Russian Federation has proposed nothing less than a multinational cryptocurrency, with the express purpose of forging a connection between the world’s emerging economies.
In developing this initiative, Putin consulted individually with cryptocurrency and financial experts from a number of different countries, namely India, the United States, Armenia, Israel and Turkey, with the aim of learning about blockchain and cryptocurrency initiatives in their respective countries.
In addition, Putin spent a large amount of time in talks with Vitalik Buterin, the co-founder of Ethereum and genius 23-year-old computer programmer, in May and June of 2017. It was at this point that rumors regarding the proposed cryptocurrency began to surface – although, at the time, it was assumed that Putin’s plans for the CryptoRuble would be confined to his own home country.
The proposed multinational cryptocurrency will be built on the backbone of smart contracts, which the Ethereum network is famous for. As has been outlined in the initial planning stages, it is designed to be used by the Member States of the Eurasian Economic Union, as well as the five BRICS countries which consist of China, India, Russia, South Africa and Brazil.
Not only would this cyber initiative potentially aid the involved countries in repairing the economic damage caused by the 2008 recession, but it could take it a step further and go as far as to positively reshape the entire economies.
It is difficult to value the exact monetary implication that it could have, but the respective nationals of each country would undoubtedly experience an income boost coupled with greater buying power as a result of the ground-breaking technological integration.
The first deputy governor of the Central Bank of Russia made the following statement in a finance ministry meeting.
“The participants of different economic events where I usually take part… all come to the conclusion the issue of a virtual currency is not needed much by one country. First of all, it makes sense to discuss the cryptocurrency on the level of several countries such as BRICS and EEU. It makes sense to set one equivalent for all payments.”- Olga Skorobogatova, Central Bank of Russia
This comes after Putin’s move to regulate cryptocurrency mining in Russia.
Although the project has not been implemented yet, it appears that it has been met with positive reactions from the countries that are due to take part.
However, the Financial Times has reported a contrasting take on the proposed cryptocurrency, claiming that its primary purpose is to avoid impending sanctions.
-the news report of January 2,2018 states.
If the proposal were to be actioned and the technology implemented, it is entirely possible that the adoption thereof would exceed 41 percent of the global population.
Much like the Mongolian Silk Road, the multinational union would create far more effective trading practices, even going as far as to completely replace fiat currency currently used in trade-centered settlements.
Further to that, the sheer technological advancement would serve as a blueprint for more to follow, opening the door for blockchain-based decentralized global trade.
Feature image by Medwedsky