Russian Billionaire to Create Palladium-Backed Stablecoin

Russian Billionaire to Create Palladium-Backed Stablecoin

Vladimir Potanin, one of the richest men in Russia, is apparently mulling over releasing his own cryptocurrency backed by palladium. The stablecoin will be traded on a platform developed by Nornickel, one of the leading producers of palladium.

It’s no secret that stablecoins have been hot recently. Although it’s still unclear about their relation to existing securities law, stablecoins are steadily getting more popular in this bearish market as traders look for security.

Expanding the list of commodities backed to digital currencies, Russian oligarch Vladimir Potanin is looking to develop his own cryptocurrency backed by palladium. Apparently the billionaire is already in talks with multipele Swiss-based palladium funds to make this a reality. Potanin mentioned in an interview recently that commodity-backed digital tokens are quickly expanding to other metals .

Potanin is currently the CEO of the world’s largest palladium producer, Nornickel. He owns about a third stake in the company. If the idea receives regulatory approval in russia, the tokens could make transactions easier and more convenient; in this case, Nornickel would therefore develop its own digital platform for such trading by the end of 2019.

Currently, Potanin is in talks with Russian lawmakers and the Russian central bank to make this platform a reality.

This comes during a time when Russian lawmakers are actively considering legislation on digital securities and cryptocurrencies more broadly. Although the future of Potanin’s project is still uncertain, it’s something to keep an eye on.

Do you think Potanin will succeed in getting his palladium-backed stablecoin approved? Let us know your thoughts down below.

Image courtesy of Forbes Russia.

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