Putin Meets With Ethereum Founder To Create National Virtual Currency

Tyler Durden's picture

Two weeks ago, in our latest comparison of Bitcoin and its up and coming competitor, Ethereum, we said "step aside bitcoin, there is a new blockchain kid in town." Actually, we said that for the first time back in February when Ethereum was still trading in the low teens (the return on ETH since then is roughly 3000%), but the most recent glance provided some perspective on where the competition between the two largest cryptocurrencies may culminate, because according to at least two venture capitalists, the market cap of Ethereum - currently roughly $35 bilion - and whose share of the market has been soaring, will surpass that of Bitcoin, at ~$43 billion although it changes by the second, sometime before the end of 2018.

Two things: first, at the current rate of gains in Ethereum market share (and loss in Bitcoin's), the inflection point between the two will come not in months, or weeks, but perhaps days.

Second, said inflection point may come in even faster if Vladimir Putin has anything to say about it, because as Bloomberg reports, "Ethereum has caught the attention of none other than the Russian president as a potential tool to help Russia diversify its economy beyond oil and gas." Putin met Ethereum's young founder Vitalik Buterin on the sidelines of the St. Petersburg Economic Forum last week and supported his plans to build contacts with local partners to implement blockchain technology in Russia, according to a statement on Kremlin’s website.

Speaking at the Economic Forum, Putin said that "the digital economy isn’t a separate industry, it’s essentially the foundation for creating brand new business model" and discussed means to boost growth long-term after Russia ended its worst recession in two decades. As explained repeatedly over the past 6 months, besides being a method of exchange, Ethereum is also a ledger for everything from currency contracts to property rights, speeding up business by cutting out intermediaries such as public notaries. It also does not suffer from some of the size limitations that have paralyzed bitcoin in recent months.

Furthermore, just like the western Enterprise Ethereum Alliance which consists of JPMorgan, Intel, Microsoft and other leading blue chips, Russia’s central bank has already deployed an Ethereum-based blockchain as a pilot project to process online payments and verify customer data with lenders including Sberbank PJSC, Deputy Governor Olga Skorobogatova said at the St. Petersburg event. She didn’t rule out using Ethereum technologies for the development of a national virtual currency for Russia down the road.

Adoption of Ethereum in Russia has been brisk also in the private sector: last week, Bloomberg reports that Russia’s state development bank VEB agreed to start using Ethereum for some administrative functions. Steelmaker Severstal PJSC tested Ethereum’s blockchain for secure transfer of international credit letters.

Blockchain may have the same effect on businesses that the emergence on the internet once had -- it would change business models, and eliminate intermediaries such as escrow agents and clerks,” said Vlad Martynov, an adviser for The Ethereum Foundation, a non-profit organization that backs the cryptocurrency. “If Russia implements it first, it will gain similar advantages to those the Western countries did at the start of the internet age.”

What about price targets? Pavel Matveev, co-founder of Wirex told CNBC today that Ethereum could reach $600 by the end of the year, leaving bitcoin in the dust. Until just a few short weeks ago, such a forecast would seem ludicrous. However, considering the recent surge in ethereum prices - recall it hit an all time high of $412 earlier today before sharply dropping then again erasing virtually all losses - it may reach that particular target in just a few weeks.

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chunga's picture

None of Uncle Scam's regulators every seem to catch any crooked bankers or wall street barbarians but you watch, if Joe and Jane Sixpack get's involved with this...wooo...big trouble.

medium giraffe's picture

Developed by a Russian on a $100,000 grant provided by Bilderberg Big Cheese Peter Thiel's 'Thiel Foundation'.

The value token of the Ethereum blockchain is called ether (from the Latin aether, to burn).

N0TME's picture

Soooo, lots of Ethereum to burn?

OverTheHedge's picture

http://www.translate-latin.com/en/dictionary-latin-english/aether%2C

Sorry, but it's a noun, not a verb.

Oh, and it doesn't mean "to burn", either.

So sorry.

(I knew those Latin lessons would come in handy, after all these years....)

medium giraffe's picture

ah, damn, its the Greek root, aither, which is 'to burn'.

http://www.thefreedictionary.com/ether

('now write it out 100 times. if it's not done by sunrise, i'll cut your balls off')

 

tmosley's picture

Infinite world currencies. And the market gets to choose.

This SHOULD excite you.

EHM's picture

NO because people will choose what they are told. This Bitcoin rally you are so found of is fueled by speculators not by those who share your dream.

tmosley's picture

>I don't believe in markets

>Please listen to my shitty opinions instead of throwing me out of a helicopter

No.

EHM's picture

I believe in markets and I believe in what Bitcoin was created to do. But I''m not naive either.

malek's picture

I just about as excited if I have infinite versions of the truth to choose from!

thisandthat's picture

Mycoin, 100% more valuable than Yourcoin; you trade with me, you use Mycoin; I trade with you, I use Yourcoin. That should be fun... for a while. Then we'll invariable end up where we started: one coin that someone else/no one controls, but doesn't quite suit your/nobody's needs.

explosivo's picture

Tmosley, Thanks for coming around here every day and engaging in arguments with the bitcoin bashers. It's because of people like you that it really dawned on me about two or three months ago that their arguments are terrible and bitcoin et al are legit and here to stay. I've since rearranged my portfolio accordingly and am feeling better about the future than ever. Shine on, brother. 

Crypto-World-Order's picture

Not a one world currency.

 

Ethereum has been designed to support so-called smart contract applications. A smart contract is a computer program that can automatically execute the terms of a contract when certain conditions are met. This use has excited many investors.

Sanity Bear's picture

Empty hype and red herring. E-currency is completely unnecessary and irrelevant to the execution of smart contracts.

thisandthat's picture

You don't need a currency for that. Linking a currency to "smart" contracts is asinine, not smart; both should be independent.

stacking12321's picture

The code runs on all active nodes (computers) simultaneously.
A better question is, who gets to write and modify the code, and under what circumstances.

c2nnib2l's picture

Putin would not waste his time on Stupidities 

 

He mans business 

stoneworker's picture

No. I think he must have hit his head on something recently since he has been making one mistake after the other.

N0TME's picture

National, not global!

She didn’t rule out using Ethereum technologies for the development of a national virtual currency for Russia down the road.

USofAzzDownWeGo's picture

Unfortunately, Putin is bought and controlled by "them" as well. Check out what he just did a week ago. He just made it illegal in Russia for anyone to deny the holocaust. Fuck him. The only thing people can turn to is the bible. Revelation 2:9

 

 

stacking12321's picture

Awwww, are you butt-hurt that putin doesn't share your view?
Maybe when millions of your countrymen die fighting nazis, you won't be sympathetic to tolerating pro-nazi propaganda,
All you nazi turds need to be flushed.

Luc X. Ifer's picture

So, u battle blockchain, e-currencies and Putin with the bible :) ?

VD's picture

this is actually a big deal.

Kassandra's picture

I agree. This is a HUGE deal..

lil dirtball's picture

> HUGE

Yes it is. Most people don't even know what crypto-currencies are, much less the implications. But they will soon , because ...

... no man might buy or sell, save he that has the mark.

Bay of Pigs's picture

That is exactly the awful shitty thought that went through my head.

Time to pour a drink...

tmosley's picture

While you do it, contemplate the social security number you have tattooed on your forehead.

lickspitler's picture

Oh shit let me check the gold price.

Oh it has hardly moved,

Right idea  wrong horse. !

 

Scuba Steve's picture

if i got gold, silver or a trade ... business will always be done.

Maybe a little more local and not global but thats the direction things are going anyway.

Grow local, raise local, buy local, finance local ... the armies will be local too.

do you really need or want crypto to do business across the table from another person looking to do local business.

"When the crash comes, and it will come, it will be the local economies that meet the immediate fundamental needs that survives".

jaxville's picture

  Another excellent point.  You can get anything you want for bitcoin as long as you are online.  Your options are really quite limited when you consider businesses within your community.  Online ain't the same as downtown.

JethroBodien's picture

BINGO!!

 

This is where the rubber meets the road as far as new world order is concerned.   http://id2020summit.org/

Ethereum will help satify the economic component of world wide identity system.

 

Addtional detail if the above link peeked your interest.  It probably should since it literally concerns everyone on the planet:

https://www.linkedin.com/pulse/blockchain-2-billion-people-un-backs-id20...

https://bravenewcoin.com/news/id2020-held-at-the-united-nations-features...

https://cointelegraph.com/news/id2020-how-blockchain-could-be-used-to-so 

serotonindumptruck's picture

The potential for WWIII just went up a few notches.

HRClinton's picture

Slutcoin. No deposit, no return.

You gotta pay to play. 

remain calm's picture

Bitcoin will be Ether's bitch

roisaber's picture

I wish I could afford more. Hopefully those alt-coins I spread my money around will pick themselves back up.

Lost in translation's picture

I suspect that when a One World currency is finally attempted, it will be crypto.

wains's picture

I suspect you are correct?.  We are in the preliminary stages thanks to the Central Banks fucking everything up. 

JethroBodien's picture

First the problem is created then the solution is trotted out.  See my links early in this thread.

stacking12321's picture

The surge in crypto has in large part to do with rejection of fiat, capital controls, and state control over money.

If any such one world currency were attempted it would likewise be dumped in favor of currencies that favor the holder of that currency.

messystateofaffairs's picture

It will be call Satancrypt, will not be open source, will be expandable (without audits of course), and equipped with a backdoor and be controlled and owned by the membership. The other open source cryptos, safeguarded by encryption, not centrally managed and with no backdoor, will still be there for us to choose and use even though the membership will declare them illegal. Brave new world coming up and the resistance is awakening.

Dragon HAwk's picture

Putin's first question was  so if we create this Russian Crypto,  who controls how much of it we can create and  add.

devil is in the details,  just a fancy way of printing money.

zipit's picture

So Bitcoin BTC vs. Russia ETH. Game on.

Crypto-World-Order's picture

No genius, ETH is the power. Think of a highway and bitcoin are the cars.