Russia is set to fast track the implementation of the much-anticipated regulatory framework on crypto currencies and block chain technologies to become the latest European Country to become a crypto friendly state.
Russia’s State Duma, the lower half if its parliamentary body, is in the final stages of finalising crypto currency regulations, and working on a strong and business friendly framework for these assets’ integration.
With the law likely to be passed as early as next month (March), Russia is hoping that this will further pave the way for the government body as a whole to launch its central bank digital currency, revolutionising the Russian crypto space.
This may have come as a surprise to many after Russia has held a particularly strong stance against virtual currencies in the country. However, it took the intervention of the upper house’s chair, Valentina Matvienko, to pressure the members of the State Duma to address the impending issue and the need to keep up to date with the way the world is headed, by adopting a friendly stance towards crypto currencies.
Oil-Backed Crypto Currency Announced
After the laws are passed in March, Igor Yusufov, a former Minister of Energy, has confirmed that Russia will introduce an oil-backed virtual currency.
The coin, which will be called Neft-coin, will go live shortly after the adoption of the digital assets regulatory framework.
Yusufov justifies the creation of an oil-backed crypto currency in the wake of the International Monetary Fund (IMF) giving the green light to eight nations to launch their own crypto currency, Russia being one of these nations along side Venezuela and Canada to name a couple.
“After the launch of the crypto currency platform, oil-producing countries will be able to manoeuvre with respect to financial and trade restrictions, which have become too many in recent years”.
Yusufov goes on to say, “Based on this, the project will bring the greatest benefit to OPEC + countries who control more than 2/3 of the world’s oil reserves, including Russia, which will be able to increase oil and gas exports, without relying on a US Dollar-pegged petrodollar. Such a union in their own interests will be not only logical but also economically justified”.
The ultimate objective of the upcoming Neft-coin project is Russia’s need to end the perceived over-dependence on the US dollar as the go-to currency in international transactions.
Neft-coin will offer Russia a refined means of avoiding the numerous sanctions imposed by the US, and will ultimately save the money that is lost during currency exchange.
“Adopting crypto currencies as a means of payment in the petroleum industry would benefit Russia and other members of the OPEC+ organisation” says Yusufov.
Already to date many of the countries sanctioned by the United States have found a way of avoiding the consequences by welcoming the use of digital assets.
This trend is only set to continue, with Russia being the latest, until the US stops imposing restrictions on the countries that question their supremacy.
The outcome of this new regulatory framework on crypto currencies will intensify the mass adoption of digital assets in the foreseen future, and we can expect to see many of the eight nations named by the IMF make positive advances with their crypto regulations.