Russia's Qiwi Proposes Commodity-Backed Bitcoin Alternative

A Russian payments company backing an idea for a digital currency has said that it could be backed by commodities.

AccessTimeIconSep 21, 2015 at 10:00 p.m. UTC
Updated Sep 11, 2021 at 11:53 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A Russian payments company seeking to launch its own digital currency has proposed backing its market value with real-world commodities.

Russian state-owned news service TASS quoted an interview conducted by RBC TV during which Qiwi CEO Sergei Solonin built on previous comments about how his company – one of the largest of its kind in Russia – might issue its own cryptocurrency next year.

According to Solonin, the cryptocurrency could be backed by "some [kind of] security in the form of energy" produced domestically in Russia. He added that such design might give the digital currency a competitive edge against bitcoin, which he argued "is not secured by anything".

Solonin went on to say that he hopes the Russian Central Bank will warm up to the idea and suggested cooperation on the initiative, telling RBC:

“We are ready, we encourage the Central Bank to cooperate. We would like some kind of open discussion in the working group. We are very keen that we have moved in this direction. We understand, of course, the concerns of the Central Bank.”

He later called such dialogue “simply necessary” for the fruition of the project, according to TASS.

The proposal has since drawn condemnation from at least one Russian government official, who branded the idea "illegal” last week.

Image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.