At the BRICS Summit Russia announced it was considering a cryptocurrency backed by the BRICS nations to facilitate trade. But, Russia’s plans are far more subtle than that.
The head of Russia’s Direct Investment Fund Kirill Dmitriev made it known the BRICS nations were considering the development of their own cryptocurrency to facilitate trade and bypass ever-draconian sanctions emanating from Washington and Brussels.
The BRICScoin is not the story, here, however. The story is buried deep in this article at The Duran as it pertains to the cryptography that would underlie such a coin.
Russia is already taking its own steps towards developing its own cryptocurrency. According to Communications Minister Nikolay Nikiforov, a Russian cryptocurrency will be designed to work with existing Russian technologies rather than the foreign technologies which form the basis of the Bitcorn blockchain.
“Bitcoin and Etherium are cryptocurrencies developed on the basis of foreign cryptography. Russia has its own cryptography school. I think that we are absolutely capable of creating a cryptographic unit, a tool, based on the blockchain technology, and work out concrete regulations to set the framework for the operations”.
Such a currency could receive an official sanction from the Russian Central Bank.
It is no secret that Vladimir Putin thoroughly distrusts American technology. And with good reason. There are backdoors that give U.S. intelligence agencies access to all the chips and software developed here.
Putin has banned some software and restricted the use of social media for these exact reasons. So, there is no way on this blue-green Earth that he would go with open cryptographic protocols that are likely compromised.
So, while Putin is happy to let Ethereum run back-office financial tasks and clean up petty government corruption, a Russian cryptocurrency will not be subject to U.S. government hacking.
This underscores a note about Russian Miner Coin that almost went unnoticed. They will doing that Bitcoin mining on Russian built chips, not off-the-shelf Intel or AMD hardware.
In fact, this is a public signal that Russian military-grade encryption technology is likely going to be used in the formation of both the Russian national cryptocurrency and any BRICScoin under discussion.
And if that’s the case, let’s put it this way. Have we heard of any Russian ships going off-course and ramming into commercial ships? No.
But, we have heard of that happening with U.S. Naval Vessels. Once is a mistake, twice in three months is proof of a hack.
This is, in fact, the biggest crypto-news of the day. Far larger than China outlawing ICO’s.
I’ll have more thoughts on this as it develops.