11:54 GMT18 May 2021
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    Cryptocurrencies backed by natural resources would be more trusted than ones backed by banks, Alexander Borodich, the founder of the Universa block-platform and a venture investor, told Radio Sputnik on the sidelines of the Third Eastern Economic Forum (EEF) in Vladivostok.

    Borodich said that, as a country rich in natural resources, Russia is able to convert electricity to cryptocurrencies through mining, thus generating as much cryptocurrencies as possible to trade with on the market.

    “With the status of cryptocurrencies in Russia not yet clear even to the government, there are certainly some projects that are more or less related to cryptocurrency. Several mining companies have presented their solutions on mining cryptocurrencies. Actually, they are more about mining than cryptocurrencies,” he noted. 

    He added that the BRICS countries and the Russian Far East were now discussing the creation of a joint virtual currency for the entire bloc.

    When asked how soon such a common cryptocurrency was expected to appear, if at all, Alexander Borodich said that this could be the first and only cryptocurrency backed by natural resources and, as such, it could be extremely successful.

    There were other proposals put forward by the United Bank of Switzerland and supported by six major banks. When asked how popular the bank-sponsored currency idea is among ordinary customers, Borodich said that what the banks actually mean is an industrial blockchain based on Etherium.

    “As for cryptocurrencies backed by banks, it would be extremely useful to use cryptocurrencies as a payment method, which allows them to instantly send payments from one country to another.

    However, as a matter of trust, it would be fairer if a currency is backed by natural resources, not by a bank, even a Swiss bank,” he elaborated.

    He noted that several countries have tried to define the term “cryptocurrency.”

    “It is something new. What is not clear, however, is what this currency really is all about, how we can use it in accounting, how we can apply taxation to cryptocurrency operations. So I think that we are going to see more regulation on this later on when the central banks decide how to operate them,” Alexander Borodich continued.

    “We want to push governments into an absolutely new dimension in this blockchain world, into applicable industrial applications of  blockchains without mining. As a result, it might be possible to run thousands of transactions and launch real-world applications both for governments and corporations,” he concluded.

    The Third Eastern Economic Forum opened on Russky Island, which is part of Russia's Far Eastern city of Vladivostok, at the Far Eastern Federal University campus on Wednesday and will run until Saturday.

    The EEF was initially expected to bring together over 3,500 participants, but Russian authorities have announced that some 4,200 people have already arrived in Vladivostok to take part in the forum.

    A total of 723 business representatives from more than 50 countries, including Australia, Canada, China, India, Japan, the United Kingdom and the United States, have also confirmed their participation in the event.


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    bank-sponsored currency, cryptocurrencies, taxation, transactions, natural resources, Universa block-platform, Alexander Borodich, Russia
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