Russian Oligarch Given Green Light for Private Digital Currency

Vladimir Potanin, a Russian businessman with interests in the metal and airline industry, has been given permission by the Russian government to launch his own blockchain – Atomyze – with a digital currency for customers to use while transacting with his business. As reported by Bloomberg, this represents a major step for blockchain innovation in Russia, February 25, 2020.

Permissioned Blockchains with a Twist

Corporations have been launching permissioned blockchains for a variety of use cases such as tracking, but this is perhaps the first instance of a corporation launching a blockchain, with a token, specifically for customers to interact with the business.

Potanin, a well-known businessman, runs the world’s largest nickel and palladium refineries in the world. Other corporate entities looking to purchase metals can use his new digital token to do so. It is unknown whether those paying with the private currency would receive a discount or favorable terms.

Commenting on the situation, Potanin noted that Russia seems to have a comprehensive framework for digital currency use. However, to add other businesses to this network, he would need the central bank‘s permission. Further, the blockchain is set to cater to corporations in the United States and Switzerland, subject to regulatory approval from local authorities.

Tokenization and Personalization

Just like Atomyze is a blockchain with a digital token used for a specific purpose i.e. purchasing metals and booking airline tickets, individuals have started to mint their own tokens so that people can rent their time. These tokens are minted on Ethereum and are issued in the ERC-20 format.

Peter Pan of MetaCartel and MolochDAO fame, as well as Tom Schmidt of Dragonfly Capital are amongst a number of “influencers” who have launched personalized tokens. Pan’s token, MAGIC, allows one to rent out his time for design help. Schmidt’s token, TOM, allows a tokenholder to commission him to make memes for them.

These tokens are breathing new life into the advent of tokenization, allowing individuals to offer consultancy. The demand for these tokens influences the price, so it allows people to pay market value for the token issuer’s time.

Trends like this can drive tokenization and the use of blockchains on a greater scale.