President Putin’s Advisor Urges Government To Adopt Digital Currency For Crimea
Russian president Vladimir Putin’s advisor has suggested that adopting digital currencies in Crimea will help attract investors as well as provide a cushion against potential sanctions.
The senior government official was speaking at the Yalta International Economic Forum (YIEF), and his sentiment adds weight to the topic of cryptocurrency used for cross border transactions.
Local news channel TASS quotes Sergey Glazyev as saying that using cryptocurrencies and other digital money technologies could offer the region an avenue towards handling barriers to the cross-border transfer of value.
Glazyev is Putin’s advisor for regional economic integration and has added to his strong sentiment in support of crypto by urging the government to consider the promise of the digital currency space.
He also believes that the region stands to benefit from an influx of investors who will find the business environment conducive, especially as having a digital currency in place would shield investors from bank-controlled sanctions.
The advisor’s positive outlook also extends to blockchain technology’s unrestricted nature as potentially crucial in efforts to steer away instability and other political risks.
One of the projects the senior official views as a feasible alternative is the stablecoin industry.
According to the TASS article, Glazyev advised that gold-backed stablecoins (or those pegged on physical assets) can be transferred across borders in cases where sanctions could hamper traditional assets.
The economic advisor also suggested that Russia considers the launch of a “stable digital token.” In his opinion, the token should be pegged to Crimea’s vast land resource, with every square meter valued in a stablecoin.
The funds raised in the process could be used to develop high-end health resorts in the region.
Crimea is reportedly Russia’s top region in terms of the amounts spent on investments. TASS report that the republic leads other regions when it comes to their respective gross regional product (GRP).
His sentiments come after the country’s central bank released an analysis detailing the benefits as well as pitfalls of having a central bank digital currency (CBDC). According to the bank, CBDCs have one major undoing- its lack of anonymity exposes users to security risks.
Russia, though with a growing number of crypto users, is yet to implement any state regulations with regard to the industry. The Duma, the country’s national assembly, has in the past postponed making a decision on a related parliamentary framework.
The delayed decision saw Putin order that the country have a regulatory framework for crypto by July this year.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.