Russia and Ethereum: what happens next?

Ethereum Putin

Earlier this week Ethereum CEO Vitalik Buterin met with Vladimir Putin. Throughout the course of the meeting it became apparent that Putin was interested in using Blockchain technology as a means of “establishing new business relationships”.

Russia’s $8bn IT Industry

Russia is known for its impressive IT industry with over $1bn outsourcing to large companies such as Gazprom and Lukoil. They also export over $7bn of software.

It’s unsurprising, then, that Russia is interested in adopting Blockchain technology.

Ethereum is being touted as “the future of the internet” and the price has risen almost non-stop in the last 3 weeks, even bouncing back from a 25% drop proving it’s long term stability.

“The digital economy isn’t a separate industry, it’s essentially the foundation for creating brand new business models” – Putin

Computer software

So what comes next?

With an official endorsement from Putin and several Russian projects moving forward we now wait and see what applications the country will come up with.

The Central Bank of Russia is already in the process of developing a national digital currency using Blockchain technology, and this very well may be built with Ethereum.

“Regulators of all countries agree that it’s time to develop national cryptocurrencies, this is the future. Every country will decide on specific time frames. After our pilot projects, we will understand what system we could sue in our case for our national currency.” – Olga Skorobogatova, Deputy Chairwoman, Central Bank of Russia

Sberbank and Severstal – a mining and metallurgical comapny – have released a statement on their collaboration using Ethereum to “securely transfer international letters of credit”.

“Using blockchain technology in the financial sector simplifies document circulation, increases the transparency of processes and reduces the time and financial costs for the company – in this case, on letters of credit.” – Alexey Kulichenko, CFO of Severstal

Ethereum price increases

Whatever happens it’s very likely that Ethereum’s price will zoom up beyond what we’d initially hoped for over the course of the summer, which is fantastic news for all Ethereum holders and traders. Buy now or miss out!

Where do you think blockchain technology is ultimately going? Let us know on Twitter or in the comments!

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About Thomas Lock 8 Articles
Seasoned cryptocurrency focused investor with a diverse portfolio covering many up and coming coins as well as Bitcoin, Ethereum and Litecoin.

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