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Sergey Glazyev, advisor to the president of Russia Vladimir Putin, has proposed to adopt cryptocurrencies in Crimea to help attract global investments and avoid any further sanctions. An important context for this news story is the fact that special counsel Robert Mueller’s report of the investigation of Russia’s meddling into the 2016 US elections was released last week (and as we reported previously, a crypto connection was already established).
The investigation was able to determine that Russia, in fact, did meddle in the 2016 elections. Following this release, America is bound to react in some way to retaliate against Russia’s invasive and manipulative actions. Cryptocurrencies could be a way for Russia to bypass any efforts by the US and the global community to hurt its economy through sanctions and trade limitations.
As reported by the local news agency TASS on April 19, Sergey Glazyev, who is an advisor to President Vladimir Putin on regional economic integration, urged his government to adopt “digital money technologies” to reduce “cross-border barriers.” He was speaking at the Yalta International Economic Forum (YIEF). He was of the view that adoption of digital currencies would “sharply reduce cross-border barriers” and attract investors who have been scared of sanctions in the past. These sanctions, he said, are carried out through banking institutions which cryptocurrencies would be able to bypass successfully.
While talking at the event, he went on to state:
“Considering the huge demand for housing and sanatorium construction in the long term, we need to produce a stable digital unit, say, tied to a square meter. After conducting the placement procedures such tokens, raise money in Russia and in the world for investment in large-scale sanatorium-resort educational construction.”
He also talked about his favorable approach towards stablecoins, which can be pegged to gold, and other physical assets are able to “pass the border, and cannot be hampered by sanctions.” Cryptocurrencies have received criticism in the past regarding their ability to void government bodies and curtail authorities’ efforts to stop illegal and/or illicit money transfer. In the case of international diplomatic relations, cryptocurrencies could be a big reason that things like trade sanctions are made impotent in helping punish big economies from behaving irresponsibly.
Successful implementation of such ideas would set a very dangerous precedent for countries like Russia and North Korea. These are regimes that are known to behave irresponsibly and even criminally, and in a way that would hurt and impose upon their neighboring countries.