Oleg Nikolaev, a member of the Russian State Duma Committee on Economic Policy, told local news agency, Rambler, on Feb 21 that the country will adopt a law on cryptocurrency in March.
According to the top official, the crypto regulation is in its final stages and will promote the growth of blockchain technology and cryptocurrencies in Russia.
Nikolaev also revealed for the first time that there is an ongoing project on the development of an oil-backed cryptocurrency to facilitate payments in Russia's oil and energy market.
This particular project, according to him is also in the final stages and will bring the following benefits to the industry when it is rolled out —
Reduction in costs of payments linked to the use of non-oil backed money or fiat currency price fluctuation on exchanges.
Removal of exchange commission incurred in converting fiat to other currencies.
Serving as a channel for Russia and other OPEC countries to circumvent trade restrictions and sanctions.
Nikolaev also hinted that the country could employ blockchain technology in tracking the movement of oil barrels without incurring the additional costs involved when these products are traditionally managed.
Another top official, Igor Kostikov who was the former Federal Securities Commission of Russia, also hinted in the report that the country will likely explore other uses cases for blockchain technology and the oil-backed cryptocurrency beyond the oil and gas sector.
“Perhaps the oil-backed cryptocurrency will be the pioneering project that will create a reliable structure for the cryptographic market as a whole.”
The latest development means that our earlier report on efforts by Russian lawmakers to regulate the cryptocurrency industry will finally come through.
Achieving this milestone will likely put Russia in the bracket of top EU countries to regulate the new industry, with calls for continental regulation still at a very early stage.
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