A Russian billionaire Vladimir Potanin who owns Norilskiy Nickel has recently declared his interest for launching a blockchain-based platform and also issue a crypto token backed by Palladium. The billionaire owned Norilskiy Nickel is the largest producer of palladium, so it is not a surprise that he wants his crypto token to be Palladium backed.
Russian authorities have quite a strong stance against the crypto use in the country and are looking to regulate its use as well as pass a law on digital assets. But, this has not discouraged businesses in Russia to look towards blockchain and cryptocurrency adoption.
Potanin wants to inspire the industry in hopes of technology adoption by the masses. Currently, the company is planning to issue tokens via its Switzerland-based palladium fund and holds the talks with the Swiss government.
Potanin said,
“People more and more tend to use decentralized networks and platforms that don’t have the main operator. We want to be active participants of this process, as trading in digital tokens has many advantages”
The Company is looking to Launch the Project By Year-End
Vladimir Potanin is estimating to launch his aspirational crypto project by the end of this year, given the Russian authorities pass their ruling on digital assets. If the crypto regulations are not finalized in the given time frame, then the firm might look for other jurisdictions to stay on course.
Potanin Explained,
“the main problem of the draft is that it says that digital platforms should be run by banks and exchanges only. That should change because such platforms can be used to do many things, so it won’t always just be in the interest of banks and exchanges, he explained, commenting on the law.”
It is being estimated that the execution of the project might cost Vladimir Potanin anywhere between $5 – $6 million in early investments and a few million every year to keep the project up and running.
Final Thoughts
Despite the passive stand by the government, Russia is a thriving ground for the crypto community. Due to its cold weather and cheap electricity availability, it is one of the most preferred destinations for the crypto mining farms and data center authorities.
Recently, President Putin gave an ultimatum to the authorities to finalize the crypto regulations to keep up with the other nations in the crypto race. Now it is to be seen how quickly the authority can act upon finalizing the draft.
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