A Russian payments company seeking to launch its own digital currency has proposed backing its market value with real-world commodities.
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:
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
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.