Russia’s Qiwi Proposes Commodity-Backed Bitcoin Alternative

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21 September 2015

A Russian payments company seeking to launch its own digital currency has proposed backing its market value with real-world commodities.

Russian state-owned news service TASS quoted an interview conducted by RBC TV during which Qiwi CEO Sergei Solonin built on previous comments about how his company – one of the largest of its kind in Russia – might issue its own cryptocurrency next year.

According to Solonin, the cryptocurrency could be backed by “some [kind of] security in the form of energy” produced domestically in Russia. He added that such design might give the digital currency a competitive edge against bitcoin, which he argued “is not secured by anything”.

Solonin went on to say that he hopes the Russian Central Bank will warm up to the idea and suggested cooperation on the initiative, telling RBC:

“We are ready, we encourage the Central Bank to cooperate. We would like some kind of open discussion in the working group. We are very keen that we have moved in this direction. We understand, of course, the concerns of the Central Bank.”

He later called such dialogue “simply necessary” for the fruition of the project, according to TASS.

The proposal has since drawn condemnation from at least one Russian government official, who branded the idea “illegal” last week.

 

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