Russia Stunningly Explores a Gold-Backed Crypto to Settle Payments

P. H. Madore
Updated
The Bank of Russia will reportedly consider a gold-backed cryptocurrency for international settlements, but some officials would prefer to use national currencies. | Source: Shutterstock
The Bank of Russia will reportedly consider a gold-backed cryptocurrency for international settlements, but some officials would prefer to use national currencies. | Source: Shutterstock

By CCN: Russia is reportedly considering the implementation of a gold-backed cryptocurrency, according to Russian news outlet Tass. Immutability and censorship-resistance are useful for governments in certain instances, such as conducting international trade in the face of sanctions. Russia and Iran previously considered using cryptocurrencies for business between the two. Iran later launched a gold-backed cryptocurrency.

Survey Says: Unlikely

Central banker Elvira Nabiullina was cold to the idea of government-backed crypto, saying that a settlement mechanism created in “national currencies” would be preferable.

“We are generally opposed to cryptocurrencies being launched into our monetary system. We do not see the possibility that cryptocurrencies could act as monetary surrogates. Definitely not in this part.”

Russia has been all over the place on the subject of cryptos. The signals from Moscow are confusing. A Russian economist was able to fool a number of western outlets into believing that the country was going to procure at least $10 billion in cryptocurrency with a series of false tweets.

Russia has considered bans on cryptocurrency, which the central bank seems to favor, and is also working on a regulatory framework that precludes normal people from acquiring and trading cryptos. Russia’s digital regulations are also in a state of flux, with a “digital iron curtain” – not unlike the Chinese “great firewall” – that would enable the country to essentially turn off the internet.

Read the full story on CCN.com.