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Russia is going to adopt a new regulation on cryptocurrency that might include the creation of oil-backed crypto.
According to Cointelegraph, DUMA, the lower house of the Federal Assembly of Russia will review the current crypto regulation and have a replacement to that on March.
Read more: Russian draft law would allow certain businesses to use crypto as payment
The discussion will also bring up the proposal of the country’s former Energy minister, Igor Yusufov, who proposes the creation of an oil-backed cryptocurrency.
Yusufov argued that an oil-backed crypto would diminish the incurring cost of a regular crypto and savings on crypto exchange commission.
At the same time, it will also “circumnavigate financial and trade restrictions” in oil trading, which would benefit Russia as well as the member of the Organization of the Petroleum Exporting Countries (OPEC).
Furthermore, he added that the blockchain technology used to create the oil-backed crypto would allow them to track and verify every barrel of oil for free.
Commenting on the proposal, Igor Kostikov, the former head of Russian Federal Securities Commission said, “Perhaps the oil-backed cryptocurrency will be the pioneering project that will create a reliable structure for the cryptographic market as a whole.”
Yusufov’s idea of an oil-backed cryptocurrency is actually nothing new. Venezuela has actualized the idea through the creation of Petro last year. Sadly, though, the cryptocurrency doesn’t seem to do well. In fact, many accused it as a scam or just another way for Nicolas Maduro to launder the money.
Read more: Venezuela crypto, Petro's price is changed (again), this time 300% up
Will the oil-backed crypto idea pan out well in Russia? Stay with Chepicap for updates.