Russia's Biggest Carmaker Prices Latest SUV in Cryptocurrency

Russia’s major car factory UAZ, or Ulyanovsk Automobile Plant, and the LavkaLavka farmer’s cooperative have announced a three-year-long deal, that will see UAZ will sell its new SUV for the BioCoin crypto-currency launched by LavkaLavka.

"UAZ will become the first Russian car manufacturer to accept the BioCoin cryptocurrency," said Vadim Shvetsov, the CEO of UAZ.

Until Russia, unlike Japan and China, introduces a legislative framework for cryptocurrencies, BioCoins will be granted to customers as loyalty points — they are credited after the purchase and can later be spent.

BioCoin is an international blockchain-based loyalty platform and an eco-cryptocurrency. "The purpose of the platform is to create a network of socially responsible companies all over the world," according to their website.

In other words, clients of shops, restaurants and other businesses that take part in the project will receive bonuses in the cryptocurrency instead of abstract points. BioCoin is currently working in test-mode, and today the going rate is 60 BioCoins to the dollar.

Russia seems to have given in to the cryptocurrency "gold rush."

Vladimir Putin embraced the digital economy during his speech at the St. Petersburg International Economic Forum and had a meeting with Vitalik Buterin, the co-founder of the Ethereum cryptocurrency.

Last week Russian First Deputy Prime Minister Igor Shuvalov said that that he supported cryptocurrencies and would welcome the appearance of the cryptoruble, while the Russian Ministry of finance expressed its position concerning the legalization of cryptocurrencies — they want to classify Bitcoin and its analogues not as currencies but as "other assets" so that only qualified investors would be allowed to trade them.

The Moscow Exchange has already announced preparations for trading in cryptocurrencies, making it a new investable asset.