London Paul and Team RogueMoney Told Ya: The Crypto-Ruble is Almost Here


from Rogue Money:

“Uncle Sam and the dollar are being stalked by a thousand pound Russian bear”

— W the Intelligence Insider (paraphrased)

While the appeal of privately ‘mined’ fiat crypto-currencies has been their security and anonymity, the Russians are seeking to create a transparent system via the Moscow exchange whereby cryptocurrency holders and trades will be known to the authorities and, if capital gains occur, get taxed at Russia’s 13{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} flat tax rate. For a country where oil and gas still accounts for roughly less than a quarter (and a declining share) of GDP, smart contracts can also be used for settlement in crude oil where useful. In theory they could also assist in capitalizing Russian sectors like energy which have been cut off or limited by U.S./EU sanctions from accessing Western capital, by offering Russian and overseas investors affordable direct investment in refining assets or pipelines. Just as real estate ICOs are poised to supplant and eventually replace REITs, this is similar to how master limited partnerships and GDRs providing liquidity in the U.S. markets, but without the need for JP Morgan or Goldman Sachs consultations on issuing the smart contract logged stakes in physical capital.

The offset to the privacy disadvantages of a sovereign as opposed to privately held cryptocurrency are, that the ease and transparency of smart contracts can help to reduce Russia’s problems with corruption/offshore money laundering. Also, through ready cash conversion or hard asset backing, the move is intended to create stronger demand for crypto if not paper rubles in trade settlement (dumping the dollar and later, the euro), a key objective of President Putin’s long term ‘de-offshoreization’ and ‘rubleization’ strategies. The latter was previously emphasized via mid-September reporting that U.S. dollars will soon no longer be accepted for trade settlement at Russian seaports.

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