Russia’s Cryptocurrency Plans for Eurasian Economic Union Set for 2020 or 2021 Release
The very concept of a governmentally-created and endorsed cryptocurrency might be enough to make a hardcore crypto supporter’s skin crawl. After all, the beginnings of cryptocurrency in the early days of Bitcoin were rooted in antiestablishment sentiments and a deep desire for full decentralization. Even in 2018, many of the most well-supported cryptocurrencies are those which do not have the backing of any centralized entity, but act instead as truly decentralized digital assets.
But this does not mean that centralized digital assets are always ineffectual. In fact, XRP has made a major splash at the number two spot in market capitulation, despite accusations that it might be far more centralized than some investors initially believed. Currencies all over the world have been effective without being fully decentralized, so there seems to be no reason why cryptocurrencies necessarily must stray from the prying eyes of any governmental or private entity in order to be acceptable.
This is, at least, much of the logic behind the proposed concept of the Eurasian Economic Union Cryptocurrency. The Eurasian Economic Union is an economic group of countries composed of those nations who wish to be in such a group but are not a part of the European Union in Europe. The group includes Armenia, Russia, Kyrgyzstan, Kazakhstan, and Belarus, and they have been quite interested in cryptocurrency technology.
Russia Taking Lead On Crypto Project
Russian leaders have recently spoken on the country’s intent to introduce a cryptocurrency idea to the Economic Union. According to the deputy finance minister Alexey Moiseyev, negotiations for the project are likely to continue from now until the end of 2019, with a potential launch date sometime between 2020 and 2021. In addition to accruing the support of other union states, the proposition is reportedly supported by several major trading partners for Russia.
Much of the reasoning behind the introduction of a digital currency comes from the heavy sanctions placed on Russia way back in 2014. Faced with a crisis of falling currency worth as a result of the sanctions, Russia upped their interest in cryptocurrency as an alternative to a failing economic system. They are not alone in this logic, either. Countries all over the world have attempted to use cryptocurrency to dig themselves out of a financial hold, though only time will tell if the efforts have been truly successful or not.
A Political Act
Clearly, there is heavy political motivation behind Russia’s interest in establishing a cryptocurrency. If the country is able to rely on the value of a cryptocurrency traded almost exclusively between its member states in the EEU, they will be able to step outside of the economic influence of the United States. Though other member states in the EEU have not been themselves the target of significant U.S. sanctions, the sanctions on leading member Russia have caused significant problems for many of them.
Only time will tell whether or not this cryptocurrency comes into fruition. Furthermore, it is currently impossible to say how a EEU cryptocurrency might alter the economic-political landscape of the region—and the world.