Russia’s State Duma plans to pass a resolution on an impending cryptocurrency regulation bill. Reportedly this regulation will pave a path for the government to launch its central bank digital currency.
According to a report from a local source, the House is likely to pass the crypto regulation law by March. Oleg Nikolayev, a member of the State Duma Committee on Economic Policy stated that the Russian assembly house had led cryptocurrency regulations to its final stages.
While the country’s central bank has been observing a conservative stance on bitcoin and other virtual currencies. Olga added that the house was working on a business-friendly framework for these assets’ integration.
Russia has been hinting towards being a crypto-friendly state and is purportedly putting its first big blockchain bet on an oil-backed cryptocurrency.
As per the former energy minister Igor Yusufov, the country is in final stages of issuing a cryptocurrency-version of the petrodollar. The Fund Energy founder told Rambler that they are working on bypassing the trade and other financial restrictions. He further claims that other oil-producing countries are aiming to increase their oil and gas exports without relying on a US Dollar-pegged petrodollar. Excerpts from his statement:
“OPEC + member countries control more than 2/3 of the world’s oil reserves. Such a union in their own interests will be not only logical but also economically justified.”
Countries like Russia, Iran, and Venezuela who are major oil producers are facing economic sanctions imposed during Donald Trump’s tenure as the US president. In an attempt to circumvent the sanctions, these countries are choosing every available avenue. For instance, Venezuela launched the oil-backed cryptocurrency called Petro.
However, President Trump signed an executive order banning any US Dollar-based financial transaction involving Petro. While Russia is being more cautious when it comes to expanding its crypto oil project. As per Yusufov, they would first launch the crypto oil project in the CIS countries.
This move would minimize US interference in their plan along with that, it would allow the government to set up a framework first between energy producers and consumers in CIS.
“In this regard, one should not forget about the current Intergovernmental Agreement between the Russian Federation and Turkmenistan on cooperation in the gas sector until 2028 and the relevant contract for the purchase of Turkmen gas by Gazprom,” explained Yusufov. “Therefore, in the case of the project, such a center can become the first global center of cryptocurrency with real security.”
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