Bank Of Russia Is Interested In Developing A Gold-Backed Cryptocurrency

The central bank of the Russian Federation, Bank of Russia, is finally set to consider a proposal that would allow it to develop and launch a cryptocurrency backed by reserves of gold. The review process has been in the latest cryptocurrency news after it was confirmed by the bank’s official Governor, Elvira Nabiullina on May 23rd.

Right now, the review process entails the body’s leadership exploring how such a state-sanctioned cryptocurrency could be used to facilitate payment settlements between countries – most of which members of the European Economic Union (EEU) which Russia has been trying to freeze in recent years.

The news about Bank of Russia and its interest in a gold-backed cryptocurrency were featured by many best cryptocurrency news sites, who also asked for comments by experts. The Governor Nabiullina noted this week that the policymarkets and their gold-backed crypto proposal was officially on the slate. However, she (and perhaps most of her peers in the Bank of Russia brass) thought that “it is more important to develop settlements in national currencies.”

Even though the review is notable since it is coming from one of the largest central banks, Governor Nabiullina and her staff are in general skeptical towards cryptocurrencies and very unlikely to greenlight the Duma’s token plan which was a hot topic in the altcoin news.

“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,” the Bank of Russia’s governor said.

So, what can be concluded from all this is the fact that Bank of Russia is simply carrying out its constitutional duties in scrutinizing the Duma’s latest cryptocurrency proposal. If it was up to them, such a review wouldn’t have taken place anytime soon.

However, the episode marks a crucial milestone in the coming altcoin news, mostly because it involves a central bank which is procedurally going through the motions of considering the development of its own cryptocurrency.

Prior to the gold-backed cryptocurrency, the former Russian energy minister Igor Yusufov proposed an oil-backed cryptocurrency as a one way ticket for countries like Russia to bypass sanctions.

“[An] oil-backed cryptocurrency would allow oil producing countries to avoid any financial and trade restrictions that have become excessive in recent years, and to step up exports of oil and natural gas” Yusufov said back in 2018.