President Putin’s advisor has made a surprising proposal to the Russian leader – that Crimea should adopt cryptocurrency in order to appeal to investors, while also avoiding sanctions, according to a report on April 19th.
The Advisor, Sergey Glazyev, focuses on regional economic integration, and his core purpose in recommending Crimea adopt cryptocurrency is to reduce cross-border barriers to financial transactions, according to his statement at the Yalta International Economic Forum (YIEF).
The Russian president’s advisor is eyeing up Stablecoins as a path to avoid sanctions
The adoption of cryptocurrency will dramatically reduce the barriers to cross-border payments, and will additionally appeal to investors who are currently afraid of bank sanctions in this area.
Glazyev has reportedly stated that stablecoins pegged to gold or other real-world assets are appealing in this case, as they’re able to “pass the border, and cannot be hampered by sanctions.”
Putin’s advisor suggests Crimea create its own cryptocurrency
Glazyev has gone further than simply recommending the adoption of cryptocurrencies, he’s even suggested that Crimea create its own stablecoin which would be pegged to the “cost per square meter” in the country, as opposed to simply adopting a leading currency like bitcoin.
The reason being that this will allow for an increase in price of the coin, while also creating a suitable environment to attract investors which will raise significant funds for building health resorts en mass in the area.
According to the Russian TASS, the original poster or the report, Crimea has now become the main region in Russia to regard investments in terms of gross regional product (GRP).
Glazyev has long been a supporter of blockchain technology in general, and in his speech at the Yalta International Economic Forum, he stated his advocacy for cryptocurrency as it is not restricted by any “unpredictable sanctions”, and as such, it can reduce risk in the political arena significantly.
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