Russian Regulatory Sandboxes to enable oil-backed cryptocurrency for Russia in Pilot RegionsFebruary 23, 2019
Russian cryptocurrency law to be soon adopted in March to allow the creation of oil-backed cryptocurrency.
The lower house of the Russian Federal House is known as the Duma. The Duma will be reviewing and adopting a cryptocurrency law this March.
Oleg Nikolaev, Economic Policy Committee at the Duma stated, the process is in its final stages of development. The sooner the cryptocurrency law is approved, more developments are expected in the blockchain technology and cryptocurrency industry.
Igor Yusufov, former Energy Minister of Russia, stated that a proposal from the head of Energia Corporation would take priority in the creation of an oil-backed cryptocurrency.
The road map for this project is getting ready, and it is in its final phase. A cryptocurrency of this kind will permit Russia and their allies to be able to manage the costs created by restrictions in trade, unpredictability in the regulations of currency exchange commissions and the differences, in the exchange rates of the USD. This plan of Russia looks a lot like the Venezuelan idea of Petro.
Venezuela launched the crypto in October 2018 to bypass international trade sanctions.
Nicolas Maduro, the Venezuelan President, went to the extent of artificially increasing the value of their fiat currency for multiple times; however, Russia did not accept the Petro Payments stating that they are “Not Happening.”
While hot crypto facts are being stirred in Russia, it should be noted that the Russian Ministry recently rubbished the need to define the crypto. There is already a categorical prohibition of cryptocurrency as a means of payment. In terms of Russian legislation, they consider the crypto to be another type of asset.
Russian Federations were recently urged to investigate the reasons for the delay in the development of relevant legislation.
The current decision of the Duma did not happen in a day. The proposal of the oil-backed cryptocurrency gained traction after high ranking parliamentarians voiced their support to allow certain sectors to use cryptocurrencies with due regulatory sandboxes.
The circulation of the oil-backed cryptocurrency will be primarily tested in pilot regions.
Anatoly Aksakov previously stated, “The law on the regulatory sandbox, which I hope we’ll adopt during the spring [parliamentary] session, will allow either individual companies or a given industry to use crypto instruments in their economic turnover and business operations in certain regions.”
Details about the corporate entities who will be a part of the pilot program are not yet clear. However, for now, it is clear that businesses who have cutting edge information technology in place will be able to be a part of this program.