By
Bena Ilyas
April 19th, 2024
In March, Russian State Duma will review the regulation of cryptos. If approved, the new law will allow Russia to continue its development in the crypto sphere.
Like many countries, Russia is looking for ways to benefit its economy by means of the development of technology, in particular, blockchain. As Russian media outlet Rambler has reported, the lower house of the Federal Assembly Russian Duma is considering adopting new cryptocurrency regulation in March.
According to Oleg Nikolaev, a member of the State Duma’s Economic Policy Committee, the process of implementing a cryptocurrency law is now in its final stage. If approved by the Committee, the law will allow Russia to continue its development in the crypto sphere.
Will Russia Issue Oil-Backed Cryptocurrency?
The former energy Minister in Russia, Igor Yusufov, proposed the creation of an oil-backed cryptocurrency to the State Duma. As Yusufov explained, the cryptocurrency would not only have a positive effect at the national level but also facilitate international trade even between countries without the intermediation of Russia.
Yusufov said:
“The introduction of a system of settlements in cryptocurrency on the energy market hypothetically allows us to avoid the costs associated with the use of currencies that are not backed up – the unpredictability of exchange rate fluctuations, the commission for currency exchange, trade restrictions.
Such a project can make a significant contribution to the development of the Russian and international digital ecosystem and set a new bar for commercial infrastructure, the use of blockchain and smart contracts for non-financial services.”
According to Yusufov, the oil-backed currency would make it possible to avoid the costs associated with the use of not-backed-up currencies and the fluctuations of their exchange rates, as well as reduce the costs against trade restrictions, currency exchange commissions, and more.
Further, Igor Yusufov stated that the approval of the project by Russia would be the first step of a global perspective plan:
“OPEC + member countries control more than 2/3 of the world’s oil reserves. Such a union in their own interests will be not only logical but also economically justified.”
As Igor Kostikov, the former head of the Federal Securities Commission of Russia, said, not only oil and gas could be connected to the currency, but any exchangeable resource. He added:
“Perhaps the oil-backed cryptocurrency will be the pioneering project that will create a reliable structure for the cryptographic market as a whole.”
Such currency already exists in Venezuela. Named Petro, it is backed by oil and is seen by the country’s government as a tool to overcome the hyperinflation and to combat with the sanctions imposed by the U.S. However, unlike Petro, Russian oil-backed currency, if issued, has much higher chances to succeed.
Right Back To Rumors?
There are those who criticize the idea of creating an oil-backed digital coin. Their skepticism is based on the previous experience connected with false rumors about Russia’s intention to buy Bitcoin. In January, it was reported that Russia would buy $10 billion in BTC and ditch the U.S. dollar. Some of the main media including Fortune and The Daily Telegraph took the bait confirming “for sure” that Russia was going to do that, but this news was not backed by any unimpeachable sources.
Later Russian Duma officially dismissed the government’s intention to buy Bitcoin, explaining there was no common sense in that.
The upcoming Russian law regarding cryptos is definitely not a rumor, but the outcome of new regulation will be clear only in March.