The CryptoRuble: Russia's Next Currency interview by Sputnik's Andrew Korybko with Dr. Garrick Hileman, Research Fellow at the Judge Business School at the University of Cambridge and entrepreneur Jim Talbott October 21, 2017
As in Russia, Kazakhstan's cryptocurrency issuance will be controlled by the State, and is intimately tied to the country's status as a global energy exporter. The question of how rapidly we will see cryptorubles or cryptotengits (KZT) 'in the wild' being traded through the Moscow or available to non-Russian and non-Kazakh nationals is an interesting one. According to a story posted by V the Guerrilla Economist here at RogueMoney on October 19, ethereum co-founder Vitalik Buterin is skeptical governments in the former Soviet Union are actually ready to unleash these blockchain units into the global digital currency marketplace, where they could be owned by foreigners and compete with privately issued fiat like bitcoin or dash:
However, as the Russia Analyst argued in our October 16 piece drawing on the research of London Paul into potential gold or other physical commodity backing for these Eurasian cryptocurrencies, there is a geoeconomic logic to accelerating the use of the digital ruble and tengits as block chain logged petrocurrencies. Furthermore, even if the initial use of these cryptocurrencies is non dollar or non euro trade settlement for oil and gas contracts, it will not be long before they become attractive for transparent payment in the sector most plagued by corruption in the former Soviet space: real estate. Additionally Kazakhstan's role as a major global oil producer that like Russia stands outside of OPEC but is required to do business with the weakened cartel's production cuts makes the crypto-tenge an attractive asset to Gulf state investors -- particularly those keen to join in President Nazarbayev's 'Nurly Zhol' infrastructure investment program that's been expanded since Russia sanctions and lower oil prices hit Astana's economy in 2014.
While Astana already has world class infrastructure in the capitol, the rest of the country and especially Kazakhstan's Central Asian neighbors not blessed with abundant oil and gas like Tajikistan which largely survive on cotton exports or remittances from migrant workers in the Russian Federation desperately need more long term investment to grow. Denominating bonds in crypto-yuan, with the option for crypto-ruble payout could be a part of an effort to entice greater Russian and Chinese investment into OBOR linked projects across the region.