Russia's Digital Ruble - Back To The Old USSR Days?

Digitizing a national currency or launching a CBDC (Central Bank Digital Currency), has some clear motives. The objectives of going for a CBDC, could differ from nation to nation. In general it would be fair to say that, governments expect to have a degree of control on their official digital currency.

There were some reports hinting that, Russia could be stepping back to the old USSR days by launching the Digital Ruble. To begin with, Russia is no exception to what we mentioned in the first paragraph. Launching and promoting a CBDC would enable a government to keep track of spending patterns, it could also highlight the possibility of undisclosed income, tax evasion and the use of money for illegal purposes. These are issues that every government would aim to keep track of.

So what is it then that, could indicate the intention of Russia to go back to the old USSR days. In our opinion, it would be the way in which a government treats its private crypto industry that, defines its intentions. Having said that, it is no longer possible or desirable for the crypto industry in any nation, to function without governing laws and regulations. It is only about those laws being clear, logical and unbiased. Russia did seem to be highly skeptical about Bitcoin and cryptocurrency for a while, but has in recent months taken a more reasonable stand.

CBDC strategies and operational modules are still evolving, it would not be advisable to rush to conclusions at this time - this applies to all nations, not just Russia. Glitzkoin Business Development Advisor Ms. Lila Ruzaini, has been studying issues related to Russian crypto strategy in recent months. In her opinion, '... Russia did initially take a hard stand against crypto in the initial days but, has adopted a more logical approach in recent months. Nations define financial paths, based on internal conditions and specific objectives - these differ from nation to nation'. 

It would not be possible to implement identical crypto laws across the globe. While multilateral uniformity can be sought on some clauses where, crypto related activities raise cross border issues - most nations would prefer to define their own legislation based on specific objectives.




GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token.  The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry. 

The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.  

The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform.  This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases. 

Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and will form the blueprint, for similar deals to be negotiated with other business operators.  


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