Jun 14, 2017
Bitcoin's Rival Just Caught Russia's Attention
Russia has shown a great deal of interest in Ethereum-based blockchain technology. This could signal a move toward diversifying Russian interests with technology outside of fossil fuels.
You've likely heard of Bitcoin as the future of money, but it is not the only cryptocurrency in the running for cashless economy dominance. The second largest among them is found on the Ethereum blockchain and is called Ether. One of the critical differences between Bitcoin and Ether is that while Bitcoin is first and foremost a currency, Ether, however, can be a platform for a variety of decentralized applications. In short, Ether can do much more than Bitcoin.
The adaptive quality of the platform may be part of the reason why Russia, under President Vladimir Putin, seem to be showing great interest in Ethereum. Reporting from Bloomberg reveals that Putin has been thinking about digital currency. "The digital economy isn't a separate industry, it's essentially the foundation for creating brand new business models," he said at last week's St. Petersburg Economic Forum.
Russia could be looking at Ethereum as a way to expand the country's economic profile of fossil fuels with technology. Bloomberg's Leonid Bershidsky suggests that Putin is "…under the impression that, to wean the country off its oil dependence, they needed a major leap in some specific area of technology that wasn't yet dominated by Western, Chinese, or Japanese tech giants."
Russia is already testing an Ethereum-based blockchain system through its central bank. When Deputy Governor Olga Skorobogatova was asked if Russia is pursuing a national virtual currency, she did not deny the possibility. Currently, there are a few countries already experimenting with national cryptocurrencies.
Coindesk cites eight cryptocurrencies from a variety of countries in the Eurozone. Among them are Iceland's Auroracoin, Pesetacoin and Spaincoin from Spain, Gaelcoin from Ireland, and Aphroditecoin from Cyprus. Cryptocurrencies offer a lot of benefits including both transparency and security. The level of encryption essentially makes counterfeit transactions impossible.
Russia is among the most powerful countries in the world. Adoption of this technology would be a major boon for the platform and could accelerate the expansion of its influence across the world.