Putin Meets With Ethereum Founder To Create National Virtual Currency

CampeadorCampeador Posts: 221 Bronze ✭✭✭
I think the Russians are going to beat the USA to the punch on this one. In the US, while the "Banksters" keep farting around with the dying Dollar, the Russians are going to be on the front as far world trade.

I s Gold Money ready to allow Buy/Sell of Metals with Cryptos?



Putin Meets With Ethereum Founder To Create National Virtual Currency

by Tyler Durden

Two weeks ago, in our latest comparison of Bitcoin and its up and coming competitor, Ethereum, we said "step aside bitcoin, there is a new blockchain kid in town." Actually, we said that for the first time back in February when Ethereum was still trading in the low teens (the return on ETH since then is roughly 3000%), but the most recent glance provided some perspective on where the competition between the two largest cryptocurrencies may culminate, because according to at least two venture capitalists, the market cap of Ethereum - currently roughly $35 bilion - and whose share of the market has been soaring, will surpass that of Bitcoin, at ~$43 billion although it changes by the second, sometime before the end of 2018.

Two things: first, at the current rate of gains in Ethereum market share (and loss in Bitcoin's), the inflection point between the two will come not in months, or weeks, but perhaps days.

Second, said inflection point may come in even faster if Vladimir Putin has anything to say about it, because asBloomberg reports, "Ethereum has caught the attention of none other than the Russian president as a potential tool to help Russia diversify its economy beyond oil and gas."Putin met Ethereum's young founder Vitalik Buterin on the sidelines of the St. Petersburg Economic Forum last week and supported his plans to build contacts with local partners to implement blockchain technology in Russia, according to a statement on Kremlin’s website.

Speaking at the Economic Forum, Putin said that "the digital economy isn’t a separate industry, it’s essentially the foundation for creating brand new business model" and discussed means to boost growth long-term after Russia ended its worst recession in two decades. As explained repeatedly over the past 6 months, besides being a method of exchange, Ethereum is also a ledger for everything from currency contracts to property rights, speeding up business by cutting out intermediaries such as public notaries. It also does not suffer from some of the size limitations that have paralyzed bitcoin in recent months.

Furthermore, just like the western Enterprise Ethereum Alliance which consists of JPMorgan, Intel, Microsoft and other leading blue chips, Russia’s central bank has already deployed an Ethereum-based blockchain as a pilot project to process online payments and verify customer data with lenders including Sberbank PJSC, Deputy Governor Olga Skorobogatova said at the St. Petersburg event. She didn’t rule out using Ethereum technologies for the development of a national virtual currency for Russia down the road.

Adoption of Ethereum in Russia has been brisk also in the private sector: last week, Bloomberg reports that Russia’s state development bank VEB agreed to start using Ethereum for some administrative functions. Steelmaker Severstal PJSC tested Ethereum’s blockchain for secure transfer of international credit letters.

Blockchain may have the same effect on businesses that the emergence on the internet once had -- it would change business models, and eliminate intermediaries such as escrow agents and clerks,” said Vlad Martynov, an adviser for The Ethereum Foundation, a non-profit organization that backs the cryptocurrency. “If Russia implements it first, it will gain similar advantages to those the Western countries did at the start of the internet age.”

What about price targets? Pavel Matveev, co-founder of Wirex told CNBC today that Ethereum could reach $600 by the end of the year, leaving bitcoin in the dust. Until just a few short weeks ago, such a forecast would seem ludicrous. However, considering the recent surge in ethereum prices - recall it hit an all time high of $412 earlier today before sharply dropping then again erasing virtually all losses - it may reach that particular target in just a few weeks.


  • paddy10tellyspaddy10tellys Posts: 249 Bronze ✭✭✭
    Thx @Campeador

    GM needs to facilitate trading gold for crypto & then they will make a fortune because of increased market share, increased transaction fees & the share price will go up. My GM shares are withering on the vine. GM are just treading water...

    Savings & payments are not sufficient. They need to facilitate gold/crypto trading, or at the v least, redemptions as BTC
  • CampeadorCampeador Posts: 221 Bronze ✭✭✭
    Cryptos still too new and the "world" have not decided on which one to use. Not sure how is going to work but at least we need to be able to exchange from Gold to Crypto. And vice versa.

    Who knows... Maybe your next meal might need to be paid on Golbits, your electric on Goldbites or your next car on Goldchips.
  • Mark_79Mark_79 Posts: 57 Copper ✭✭
    It's my opinion this young man Vitalik Buterin is suspect will soon find himself imprisoned (most likely in the USA).

    The great thing about bitcoin is that Satoshi was anonymous and then just disappeared, no one can persecute him.

    What happens when the USA approach Mr Buterin and say that North Korea just did a deal with Iran for chemical weapons and was settled on the Etherium blockchain??? Etherium will have to become a tool of the FBI/CIA, etc or he will be locked up for aiding and abetting a rouge state to obtain chemical weapons.

    Also Etherium has been doing ICO's which are a bit like IPO's but on the blockchain, there has been much speculation that the SEC are about to crackdown very hard on this as many of the ICO's are nothing but scams.

    Watch out Vitalik Buterin.
  • SecretsSecrets Posts: 59 Bronze ✭✭✭
    So much bull around Ether that its impossible to tell whats true and what isn't. The original version of this story made no mention of a statement on the Kremlins website for example and in all the articles published now, i see no link. The only thing that seems to be accurate is that Putin and Vitaly were at the same conference and Olga Skorobogatova didn't deny that ether could be a national currency. (Was she even asked?)..

    JP Morgan & Microsoft might be investigating the technology, but if they find it useful one would think they would just copy it and implement on their own networks. I doubt they want to publish all customer transaction records in a public blockchain, outside of their control and visible to all.
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