Report: Russia reviews new encryption regulations and plans to launch cryptocurrency supported by oil

Report: Russia reviews new encryption regulations and plans to launch cryptocurrency supported by oil

Translator: Play the coin family ElaineHu

The Russian State Duma (lower house of the Russian Federation) plans to revisit and pass the new cryptocurrency regulations in March. Russian financial media Rambler reported on February 21 that former energy minister Igor Yusufov also proposed a petroleum-backed cryptocurrency project.

In addition, media reports said that Igor Yusufov, head of the energy investment company and former energy minister, proposed a petroleum-backed cryptocurrency with tangible prospects. According to reports, the construction of the project roadmap has almost entered the final stage.

According to reports, Yusufov said in an interview with Rambler that the introduction of a cryptographic settlement system in the energy market would avoid the cost of using unbacked currencies and exchange rate fluctuations. He also cited the potential for cost savings in the foreign exchange committee and trade restrictions as an example of other benefits that the proposed system might bring.

The article also emphasizes that informal members of the Organization of Petroleum Exporting Countries (OPEC), including Russia, will benefit the most from this system. The reason given is that the cryptocurrency platform will allow them to bypass financial and trade restrictions.

In addition, Yusufov explained that the blockchain will also be used to track and validate every barrel of oil across the chain without additional costs. According to reports, Igor Kostikov, former chairman of the Russian Federal Securities Commission, commented on this idea. He said that not only oil and natural gas can be integrated with it, but any tradable resource can be used. His conclusion is:

"Perhaps the oil-backed cryptocurrency will be a groundbreaking project that will create a reliable structure for the entire encryption market."

The idea of ​​a country issuing oil-backed cryptocurrencies is very similar to that of Venezuelan Petro. Petro was first announced in 2017 by Venezuelan President Nicola Maduro and launched in February last year. However, oil-based tokens have not yet been realized.

As Cointelegraph reported at the end of January, the Speaker of the House of Lords of the Russian Parliament urged lawmakers to speed up the work of the Digital Economy Act, including a draft encryption regulation.