For months now Russia has been moving into the blockchain space in a serious way. I’ve talked about these moves in previous articles (Etherium: Russia’s new Oil, Bitcoin as Russian Reserve Asset and yes, even here) …[icliks: Russia is developing its own fork of the Etherium blockchain – one with Russian “certified” cryptography, which I suppose means the Russian government gets a back door to the user’s personal data. It is called Masterchain and the Bank of Russia and the government are fully behind it.]
[icliks: the Masterchain blockchain is a smart contract ledger. The FinTech Association is cited by RT in its post, Russia’s biggest banks take lead in embracing blockchain technology, as saying that Masterchain is,
a specifically designed platform that allows two or more partners to enter into a smart contract without an intermediary. The technology may also be used to verify contracts, intellectual property rights and online public ledgers without a third party. … Masterchain also enables Russian lenders to search through each other’s database of blacklisted clients … . Russia’s Masterchain will have its own virtual currency tentatively called “gas.”
We now return you to Tom Luongo.]
The National Settlement Depository (NSD) is moving, via the WAVES platform, to token-ize as much of the Russian economy as it can. …
The better plan is to loosen central bank policy, issue some ruble-denominated debt (or yuan) while building up the crypto infrastructure to absorb (incoming) capital flows without creating dislocations within the ruble market.
This creates a more natural and organic flow of capital into the country without it causing social upheaval. Like the announcement of Russian Miner Coin, this move by the NSD is just another building block in the foundation of a more resilient Russian financial system … .
This, in turn, limits the effects of U.S. sanctions. Once the market comes to the conclusion that Russia treats capital better than the U.S. does, the current trickle will become a torrent. And Russia has to be ready to handle this.
… Russia and China are working to increase investor confidence while the U.S. and EU are punishing investors because it is a privilege to use the dollar and/or the euro.
[icliks thinks this is not strictly a Russian thing. It is the Russian version of the Chinese version of the Money of the Beast.]