Russia raises regular cryptocurrencies and issue its own version of the Petro.
The State Duma of the Russian Federation, corresponding to the Lower House of the Russian Federal Assembly, plans to review and approve a law to regulate the sector of cryptocurrencies in the month of March. This was pointed out by Oleg Nikolayev, member of the Economic Policy Committee of the State Duma, according to the publication of the local portal Finance Rambler on 21 February. Additionally, the plans to create a national crypto-active linked to oil were announced.
Parliamentarian Oleg Nikolayev said that the regulation is in the final stage of development and that the legal instrument will provide a favorable framework for the cryptocurrency and blockchain initiatives.
The report highlights that the approval of the law could pave the way for Russia to launch its state cryptocurrency. As was known last November, the State Duma would be evaluating the issuance of a token linked in parity 1: 1 with the ruble, with the backing of the Russian Central Bank. However, the possible creation of a national cryptocurrency linked to oil is also on the table.
The head of the Energy Corporation and former Russian Energy Minister Igor Yusufov, a proponent of the Russian oil crypto currency, told Rambler that the project’s road map is in the final phase. As basic advantages of this cryptoactive, Yusufov said that it will reduce costs associated with commissions and fluctuations in the exchange rate, as well as avoid financial and commercial restrictions. Russia is subject to economic sanctions by the United States and the European Union, for its actions in the Ukrainian crisis in 2014.
According to the official, the project is aimed at becoming a new international commercial standard. The idea is that the oil cryptocurrency platform allows Russia and the OPEC producing countries to evade the restrictions derived from the use of the dollar and increase their production. In Yusufov’s opinion: “the traceability of the transactions, characteristic of the chain of blocks, will assure the origin of each barrel and verify the entire chain from production to the final consumer without additional costs”.
Yusufov believes that in the future, once the reliability of the infrastructure is consolidated, this cryptocurrency will allow the exchange of other energy resources such as gas and electricity to be added to the platform. However, given the economic sanctions, he clarified that the project would initially be launched within the framework of the Commonwealth of Independent States (CIS). “It is more convenient to launch the project within the framework of the Union of the CIS countries as energy producers (Russia, Azerbaijan, Kazakhstan) and consumers (Belarus, Ukraine),” said the official; who believes, in addition, that the oil cryptocurrency could create “a reliable structure for the cryptographic market as a whole”.
It should be noted that this law has suffered delays in its approval by parliament, and had to face disagreements between the Ministry of Finance and the Central Bank in early 2018. Initially, the President of Russia, Vladimir Putin, had requested that The law will come into force on July 1, 2018, however, in December of last year, the law was returned for substantial changes.
The first country to create a state-based cryptoactive oil was Venezuela, which announced the birth of the petro (PTR) in 2018. The Venezuelan government offered this cryptocurrency as a formula to revive its economy and evade the sanctions imposed by the United States. However, the cryptoactive has not achieved the effects announced by the Venezuelan Executive.
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