Russian media is reporting that Olga Skorobogatova, first deputy governor of the Central Bank of the Russian Federation, has echoed President Vladimir Putin's call for "the formation of a single payment space for the member states of the Eurasian Economic Union" that integrates "new financial technologies."
Skorobogatova's comments during a recent meeting of the Russian Finance Ministry clarify what is apparently a Russian initiative to unite itself with its economic partners via a common cryptocurrency. Per Skorobogatova:
"The participants of different economic events where I usually take part … all come to the conclusion [that the issuance] of a virtual currency is not needed much by one country. First of all, it makes sense to discuss the cryptocurrency on the level of several countries such as BRICS and [EAEU]. It makes sense to set one equivalent for all payments."
Although the details of the proposed universal cryptocurrency remain undisclosed, this is the second time in as many months that Russian officials have alluded to this inclusive strategy as being more advantageous for all countries concerned, rather than if each country created its own digital coin.
Should Brazil, Russia, India, China, and South Africa (BRICS) make a common cryptocurrency with Armenia, Belarus, Kazakhstan, and Kyrgyzstan (EAEU), the monetary standardization could potentially improve trade efficiency among these nations, and even create a trade block that could reshape global trade more generally.
"The introduction of a national digital currency seems to us not entirely justified from the point of view of macroeconomics," said Skorobogatova, referring to the perceived incentives for Russia to promote the creation of a multi-nation cryptocurrency.
The New Development Bank, formerly known as the BRICS Development Bank, is expected to play a leading role in this initiative. ETHNews will cover further details as they emerge.