Days before the end of 2017, the Central Bank of Russia suggested the first joint multinational cryptocurrency for BRICS and EEU countries. By jointly adopting a new cryptocurrency, the Member States could increase their investments in Blockchain, smart contract technology pushing towards creating cashless societies and improve managing their liquidities with substantial support from the New Development Bank.
Based on instructions from President Vladimir Putin, Russia’s central bank and finance ministry jointly prepared a bill for the regulation of сryptocurrencies and ICOs which was submitted to the Duma for approval on Dec. 28, 2017. The bill is expected to be adopted in March and finalized by July 1, 2018.
Member States, known for their tremendous economic growth potential, could hail this first of its kind cyber-initiative. As they have been reeling from the global credit crisis of 2007/2008, which hindered their economies. Federal rate increases augmented their mounting debt burdens and falling global commodity prices stymied their export led growth. The cyber-initiative could reshape Member State economies, by spurring technological innovation for income growth and economic prosperity.
Many economists, veteran bankers and traditional financial institutions have sought to downplay the influence of cryptocurrencies in the overall world economy, such as the German insurance giant Allianz Chief Economic Advisor Mohamed El-Erian who said: ‘‘Bitcoin’s price will explode, but mass adoption is not going to happen.”
But if adopted and implemented, the first multinational cryptocurrency could be used by more than 41 percent of the world’s population. It could potentially improve trade efficiency among the Member States by replacing other fiat currencies used in trade settlements. And it could create a technologically resourceful trade block that could reshape global trade via Blockchain and smart contract technology.
Do you guys think Putin has any ulterior motive in proposing the multinational currency?