Russian President, Vladimir Putin, has proposed the creation of a multinational cryptocurrency. The BRICS and the Eurasian Economic Union (EEU) countries will be united by a new common cryptocurrency. Something similar happened when the BRICS Bank was created in 2014/15. The intention is to empower emerging economies and bring them together to potentiate their growth and links.
Mr Putin proposed a multinational cryptocurrency that would bring closer the BRICS and the EEU countries. With Vitalik Buterin’s advice, experts from several countries are analyzing the possibility to create this cryptocurrency. United States, India, Israel, Armenia and other countries are behind the group of developers studying this idea.
After the global financial crisis in 2007/2008, these countries suffered from it and now they are recovering to pre-crisis levels. With this cryptocurrency and other initiatives, these states will be able to improve their technology infrastructure, increase their growth rates and be economically prosper.
Several countries from the EEU like Russia, Kazakhstan and Belarus have been heavily investing in blockchain technology. Belarus has created a tax free zone for blockchain investments and is trying to push for a wider cryptocurrency use.
Russia has opened two cryptocurrency agencies in Vladivostok and is trying to regulate the cryptocurrency market in the country. In addition to it, it has the intention to create its own cryptocurrency: the CryptoRuble.
Kazakhstan has also decided to create better conditions for blockchain start-ups. But it has decided to heavily regulate the use of cryptocurrencies. Besides that, it has announced the creation of a national cryptocurrency backed by natural reserves.
BRICS Struggling to Take the Global Leadership
Brazil, Russia, India, China and South Africa are struggling to take the world’s leadership. When they have created the New Development Bank (NDB), the discussion was whether the IMF was going to lose part of its influence around the world. The truth is that the NDB couldn’t establish itself as a competitor to the IMF. In the end, the IMF does not face a real competitor with this new bank.
The new multinational cryptocurrency could face the same destiny. Could promise a new interconnected world without barriers for these developing countries. This could help them increase their economies and strengthen their ties, but that remains to be seen.
At the moment, several cryptocurrencies are spreading all over the world. Institutions and enterprises are using these currencies to make international transactions, pay employees and suppliers. It is not clear how a multinational cryptocurrency will work in this market. But the proposition has already been made.