Russia to issue cryptocurrency collateralized by natural riches | Far East, Finance, business

Far East | Finance, business

Russia to issue cryptocurrency collateralized by natural riches

10 May '18
Russia’s Fund for the Development of the Far East and the Baikal Region has unveiled plans to float a cryptocurrency pegged to the free market value of Siberian diamonds, as well as gold, gas and other natural riches, reported, citing fund CEO Aleksei Chekunov. The Fund is a 100% subsidiary of VEB Bank, one of this country’s largest government-owned banks, also known as a national development institution, currently sanctioned widely by the U.S.

Mr. Chekunov pointed out that the cryptocurrency will be collateralized by “trillions of dollars worth of natural resources.” No particulars of these plans have been made public thus far.

This appears to be a growing trend that originated earlier in other countries as well. In February this year, President Nicolas Maduro of Venezuela announced the launch of the pre-sale of the El Petro, the national cryptocurrency. Pegged from the outset to the price of the oil barrel, the cryptocurrency is now worth $60/unit.