Tuesday, October 17, 2017

Russia's new CryptoRuble has likelihood of eventually being gold backed, and tied to China

Ironically there has been only a few countries that have been racing towards engineering a sovereign cryptocurrency as Blockchain technology becomes accepted as the future of finance.  And from one nation's perspective, being the first to do so might give them a huge advantage in the new financial system.

On Oct. 16, Russia's President Vladimir Putin greenlit the creation of a sovereign cryptocurrency that is expected to replace the Ruble, and according to some sources, it may even usher in a return to resource backed money, either in the form of gold or possibly oil.

Russian President Vladimir Putin has ordered the issue of a national cryptocurrency, according to Communications Minister Nikolay Nikiforov, after a closed-door meeting.
The minister said once the digital currency or CryptoRuble is issued other cryptocurrency mining will be banned and it will be entirely regulated by the government. 
“I am so confident to declare that we will run CryptoRuble just for one simple reason: if we don’t, our neighbors in the Eurasian Economic Community will do it in a couple of months,” said Nikiforov. 
All the financial operations involving the CryptoRuble will be taxed according to the minister. The tax will also be applied to any appreciation in value. 
“When buying and selling a CryptoRuble, the rate will be 13 percent from the earned difference. If the owner cannot explain the reason for the appearance of his CryptoRubles, when converting them into Russian rubles, the tax for him will be 13 percent of the total,” he said. 
The national digital currency will be moved to international markets, according to the Russia's Deputy Minister of Economic Development Oleg Fomichev, stressing that there is no point in the currency circulating only inside the country. – Russia Today
Russia's new cryptocurrency appears to also be strongly tied with monetary agendas being forged in China, with greater news on their upcoming Yuan denominated oil contract expected to come shortly after completion of the Communist Party conclave.
Most important to the big geopolitical and economic reset picture, as the Russia Analyst told RM's esteemed UK-based regular guest host London Paul via messages this morning, it is very unlikely if not inconceivable Moscow would forge ahead on what will ultimately be a gold backed cryptocurrency without very close consultations with China. The Chinese Communist Party (CCP)'s leadership happens to be convening this week for Beijing's 19th CCP congress. The Russian Analyst does not believe this is a coincidence. Moscow and Beijing hold the world's second largest and biggest stockpiles of gold, and the Chinese have already made the first move of the Eurasian giants working in tandem, via Beijing announcing a crypto-yuan which can be settled via cash renminbi or in physical delivery from the Shanghai Gold Exchange (SGE). – Rogue Money


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