According to a Russian news outlet, Russia is thinking of coming up with a cryptocurrency of its own, backed by gold. A banker from the Russian central bank, Elvira Nabiullina on the other hand, had a cold response to this news of Russian gold backed cryptocurrency. Amidst the Russian president, Vladimir Putin seeking to implement strict regulations on crypto structure all over Russia, EAEU Minister is confident to see crypto, out in the public ready to use.

An official from the central bank of Russia, Elvira Nabiullina took no time to shrug off the news. Instead, the banker suggested to adopt a mechanism to promote national currencies would be far more better. Nabiullina stated acting out of the banker instinct that cryptos cannot be merged with the current monetary systems. The banking system did not pay a significant heed to the news regarding gold backed crypto. The Russian banking system is of the view that the crypto market had presented several scams including the BitConnect fraud and recent mining frauds, as a Dutch mining firm was apprehended because it was being used as a hub for smuggling cash to offshore accounts

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.

Crypto-Adversaries in Russia Wants to Ban Cryptos!

A political Russian official, Nikolay Arefyev recently remarked that the cryptos must be banned from the Russian financial circuit. He said so as Russia had suffered from financial flow being directed to offshore accounts through crypto money laundering, weakening the Russian economy. Furthermore, even the Russian President himself believes that cryptos have injured the Russian economy adversely and that it needs to be regulated on immediate basis. Amidst these adversaries for the cryptos, the news of a gold backed crypto seems highly unlikely, as the central banker suggested.

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Russian-Iran Talks Crypto Business:

Russia has backed Iran over several occasions and is willing to act similarly as Iranians, coming out with a gold backed crypto of their own. Iran has released their own similar crypto, Peyman. Four Iranian banks, Parsian Bank, Bank Pasargad, Bank Melli Iran and Bank Mellat have joined hands for the crypto. With one billion units of Peyman to rotate in the financial circuit, the crypto was designed to tokenize bank accounts and public properties. Furthermore, Iranian news reported that the country seeks to establish state-backed crypto in order to get rid of strict US sanctions and to ease trade with the Russians

Minister Confident for the Gold-Backed Crypto!

Tatyana Valovaya, the Minister of Integration and Macroeconomics for the Eurasian Economic Union is utterly confident that the crypto will reach the expected benefit. Valovaya suggested that the crypto was coined so as to settle payments between the states like Iran, which are open for trade. With Iran having a similar crypto, Valovaya mentioned that the report will show the positive aspect of cryptos. Furthermore, this will also be utilized to sneak out of the US sanctions that the Russian government, too has to act upon.

We have prepared an analytical report and will present it soon, that will analyze what cryptocurrencies are, what is happening in the world, what approaches countries have, what regulation is provided. … If the trend of cryptocurrencies and blockchain development is picking up pace, we have to realize that.

READ ALSO: Putin Wants to Keep a Check on Bitcoin and Cryptos Through Firewall

Valovaya suggested that the Russian government must realize that cryptocurrencies and the blockchain technology are the tools for future and must act so as to promote similar projects. These sort of projects must be regularized in order to prevent aforementioned scams and frauds. To ease up things like the Iran trade, cryptos can give out benefits if the transactions are conducted in a relatively controlled environment which the incumbent authorities have failed to provide.

A Russian Duma member, previously said that Russia might not see cryptos being introduced in Russia for three decades going forward. This gold backed crypto, bursting out to the scene took the direction to another side. The crypto being to importance does coincide with the fact that Putin wants to put regulations and has given a deadline.

READ ALSO: 600 Bitcoins Have Been Collected in Three Years to Bring Down Vladimir Putin