Russia’s Crypto Rise - Far From Bitcoin’s Purpose?

[Finestream]

I just saw a report saying Russia now leads Europe in crypto adoption, and they even have their own ruble-backed stablecoin called A7A5, which already hit around $500M market cap this October. Pretty crazy when you think they’re still under Western sanctions.

What’s interesting though, is that people turn to crypto when they lose access to the global banking system which is kinda what Bitcoin was made for in the first place. But here’s the twist: A7A5 is backed by Russian banks, meaning it’s still controlled and centralized. So yeah, it’s crypto, but not really “free” the way Bitcoin is supposed to be.

It makes me wonder, are we really seeing adoption of crypto, or just governments using blockchain to rebuild their own version of fiat?

Maybe I’m overthinking it, but feels like “crypto adoption” isn’t the same as “Bitcoin adoption” anymore. What do you guys think?

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https://finance.yahoo.com/news/russia-tops-europe-crypto-adoption-212931478.html

[Fivestar4everMVP]

I just saw a report saying Russia now leads Europe in crypto adoption, and they even have their own ruble-backed stablecoin called A7A5, which already hit around $500M market cap this October. Pretty crazy when you think they’re still under Western sanctions.

What’s interesting though, is that people turn to crypto when they lose access to the global banking system which is kinda what Bitcoin was made for in the first place. But here’s the twist: A7A5 is backed by Russian banks, meaning it’s still controlled and centralized. So yeah, it’s crypto, but not really “free” the way Bitcoin is supposed to be.

Bitcoin is not "supposed" to be decentralized, it's actually and absolutely decentralized with no one single person having the power to change any thing in the blockchain..

While on the other hand, what exactly were you expecting from the government of they decide to build a cryptocurrency? Do you really think they will build something that benefit me and you, and they have absolutely no control over? Then maybe you should think again 😁

If the government knew how to gain access to bitcoin code/database to gain control of the entire bitcoin system, they would have a long time ago, and trust me when I tell you that some government agencies must have tried to hack bitcoin but have never succeeded, and this is why several of them love bitcoin.

And as for  the Russian governments creating their own stable coin, that's a welcome development for them so long as it helps boost their economy and improve the citizens of the country standard of living.

[Abiky]

I just saw a report saying Russia now leads Europe in crypto adoption, and they even have their own ruble-backed stablecoin called A7A5, which already hit around $500M market cap this October. Pretty crazy when you think they’re still under Western sanctions.

What’s interesting though, is that people turn to crypto when they lose access to the global banking system which is kinda what Bitcoin was made for in the first place. But here’s the twist: A7A5 is backed by Russian banks, meaning it’s still controlled and centralized. So yeah, it’s crypto, but not really “free” the way Bitcoin is supposed to be.

It makes me wonder, are we really seeing adoption of crypto, or just governments using blockchain to rebuild their own version of fiat?

Maybe I’m overthinking it, but feels like “crypto adoption” isn’t the same as “Bitcoin adoption” anymore. What do you guys think?

________________________________
https://finance.yahoo.com/news/russia-tops-europe-crypto-adoption-212931478.html

Governments are making use of Blockchain tech to launch digital currencies of their own (aka CBDCs). That has always been the plan from the start. You will see many countries drafting laws in favor of Bitcoin. But it's only to help attract investors. The more money in the industry, the more taxes they will be able to collect.

Russia's is seizing this opportunity to help circumvent western sanctions. Crypto is decentralized, after all (most of them). Ruble-backed stablecoins will help keep Russia's economy afloat no matter what. I'm assuming they'll be launched on public blockchain networks. They'll be losing a lot of security benefits if they decide to use a their own private chain. Imagine if other BRICS countries do the same. It could mark the end of SWIFT (and US hegemony) for good. We'll see what happens in the long run.

[Rustam Meraj]

It is very correct big argument now is whether we are seeing real crypto adoption or it is simply that governments, such as Russia with its bank controlled A7A5 digital coin, are using blockchain way to make payments easier and get around sanctions without losing all power over money, which is opposite of what Bitcoin was meant to do. Bitcoin is freedom tool since no person or bank can control it, and individuals having trouble with economic difficulties use it due to this not controlled idea, while governments only use technical part of blockchain. So, we are seeing both ways of adoption due to totally different reasons, and we should look at idea of not having one center of power to figure out whether project is following first concept of crypto or just putting old system into new digital box.

[Finestream]

Governments are making use of Blockchain tech to launch digital currencies of their own (aka CBDCs). That has always been the plan from the start. You will see many countries drafting laws in favor of Bitcoin. But it's only to help attract investors. The more money in the industry, the more taxes they will be able to collect.

Russia's is seizing this opportunity to help circumvent western sanctions. Crypto is decentralized, after all (most of them). Ruble-backed stablecoins will help keep Russia's economy afloat no matter what. I'm assuming they'll be launched on public blockchain networks. They'll be losing a lot of security benefits if they decide to use a their own private chain. Imagine if other BRICS countries do the same. It could mark the end of SWIFT (and US hegemony) for good. We'll see what happens in the long run.

They might consider using Bitcoin for its more secure blockchain, but the problem is the volatility. That’s something they can’t afford to risk, especially when they have no control over the market. A sudden swing could hurt their economy badly if too much money is tied to Bitcoin exposure.

That’s why I think they prefer to build their own crypto, a stablecoin they can regulate and manage, instead of depending on something completely decentralized.