The Moscow government is currently looking for a contractor to build a blockchain system that houses the city’s administrative services.
The relationship between Russia and cryptocurrencies has been a bit tense since its creation, creating a grid of regulations and prohibitions within the territory, although Russian President Vladimir Putin has sometimes declared making “exceptions” with respect to some digital assets. On this occasion, Ethereum seems to be the right choice for the plans of the largest country in the world.
A media reported that the Moscow Information Technology Department announced an auction to develop an Ethereum-based system that will house the electronic services now offered to the citizens of Moscow. The estimated cost of developing this project is around 57 million Russian rubles, which is equivalent to around USD 860,000.
The list of services that will be hosted on the platform includes the issuance of documents related to property owners and residents; the allocation of spaces to farmers’ businesses in the city’s markets. The system will be based on the authority test consensus and has a maximum capacity of 1.5 million simultaneous viewers.
The construction of the platform is expected to take 60 days, once the contractors have been chosen and the agreements signed in accordance with the terms. The Information Technology Department said they hope to increase customer confidence in Moscow’s electronic services by boosting transparency through the use of a blockchain.
The platform will also be integrated with other blockchain experiments that have already been taken by the Moscow state government, which include a voting platform called Active Citizen, which will allow Moscow residents to express their preference in everyday affairs, such as the location of new cycle paths and street decorations when qualifying city events.
The city has been testing Active Citizen since 2017. According to an official announcement, there is also a plan to allow certain districts to vote electronically during the legislative elections this fall, using blockchain technology. This option would be available to approximately 6% of voters.
Another process was launched in 2018, which consists of a system to allocate trade spaces to farmers in the city’s markets, based on the Ethereum blockchain, according to a media report at the time. Around 2,700 trading shelves are available for the market season that runs from April to November, but around 20,000 people usually bid for them.
Relationship between the Russian government and cryptocurrencies
The Russian government has confirmed on previous occasions the creation of its own oil-anchored cryptocurrency, which will most likely be called “Cryptor”. This was reported by Russian media after private meetings between the Russian high command with President Vladimir Putin. This was Russia’s first big step towards a more realistic approach to cryptocurrency adoption.
The information was known 2 years ago through the page of AIF.ru. According to this, the Minister of Communications and Media of the Russian Federation, Nikolai Nikiforov, was the one who shared the scoop in a closed meeting with the Moscow Capital Club and said that the decision was taken by the president of Russia, Vladimir Putin.
Nikiforov said the launch of the cryptubub will be done quickly, before his Eurasian neighbors get ahead of him. This event can be driven (or not) by matters of internal convenience within the same Russian economic system, so there is no sure way to predict how this cryptocurrency could interact in the market.
This project would be oriented to become a new international commercial standard. The idea is that the idea of an oil cryptocurrency platform allows Russia and OPEC producing countries to evade restrictions arising from the use of the dollar and increase its production. The head of the Energy Corporation and former Minister of Energy of Russia, Igor Yusufov said that the traceability of the transactions (characteristic of the blockchain) will ensure the origin of the barrels and verify the entire chain from production to the final consumer without additional costs.
The first country to create a state oil-anchored cryptocurrency was Venezuela, which announced the birth of petro (PTR) in 2018. The Venezuelan government offered this cryptocurrency as a formula to refloat its economy and evade the sanctions imposed by the United States. However, this currency has not achieved the effects announced by the Venezuelan Executive. In fact, it generated a wave of distrust at a national and international level due to the doubtful origin and support of this supposed “cryptocurrency”.