Russia is on the verge of launching an oil-backed cryptocurrency. The country is is best known for having some of the most sophisticated data security systems in the world. In fact, it is rumored that the most lethal cyber hackers are from this country. Over the last one year, Russia government has been keenly observing cryptocurrency and blockchain trends. A recent report from State of Duma states that the state leaders are in the final stages of passing a resolution on regulations that will streamline the cryptocurrency industry.
Regulations and Oil-Backed Cryptocurrency
One of the members of Economic Policy committee in State of Duma, Oleg Nikolayev, recently told the please that the assembly is in the final stages of creating robust cryptocurrency regulations. Unlike Russian Central bank that has a conservative stance on all cryptocurrencies include bitcoin, State of Duma is creating a business friendly regulation framework that will promote adoption and use of digital currencies.
The House is most likely going to finalize the process by end of March and start the process of implementing the regulations. The regulations will further pave the way for national government to launch a central bank cryptocurrency.
Before we proceed, it is important to note that Russia is determined to become the most crypto friendly country in the world. The teams working on this project are focused on an oil-based cryptocurrency. In a recent interview, Igor Yusufov, the former Minister of Energy, stated that the country is in the final stages of issuing a national digital currency similar to Venezuela Petro.
The oil-backed cryptocurrency, if it is actually launched, will help the country circumvent some of the trade and financial barriers or restrictions imposed on Russia by the United States of America and other developed countries. There is also a claim online that hints that other oil producing countries are looking for ways of increasing their production and export of oil and gas to other countries without relying on US dollar-pegged petro dollar.
In a recent statement, Rambler, the Fund Energy Founder, stated that OPEC member countries have control of more than 2/3 of the total oil reserves in the world. Such a union is not only logical from an economic point of view but also sustainable.
Creation of an oil-backed cryptocurrency will have a major impact on Russia economy and other major oil producing countries. They will be able to export oil and gas to other countries without relying on the US dollar. The cryptocurrency will also help them work around the stringent sanctions imposed by current US President, Donald Trump. Here is more cryptocurrency news that you might want to read.