Russian President Vladimir Putin met with the President’s Council on Strategic Development in Moscow on Wednesday, urging for economic stability for both Russian business and government through digital economies, or what we know as cryptocurrency.
“The digital economy is not a separate industry; in fact, it is a way of life, a new basis for the development of a system of public administration, economy, business, the social sphere and the whole of society. The digital economy is a matter of national security and independence of Russia, competition between domestic companies and the position of the country on the world stage in the long term, for the next decade in fact.” – Vladimir Putin
For those who don’t know, there has been a surge in cryptocurrency usage worldwide. What we commonly know as Bitcoin (Ƀ), is really one version of several cryptocurrencies that plan to establish cyber economies in the future years. Cryptocurrencies have value because they are limited, protected by an algorithm, hard to trace, and even harder to tax. This makes digital economies a target to many governments in the western world.
However, Vladimir Putin is known to have interest in cryptocurrency himself; Ethereum (Ξ), Bitcoin’s primary competitor, developed by Vitalik Buterin, has skyrocketed since earning endorsement from the Russian president, and looks to be the digital currency in the Russian sphere of influence in the near future.
Putin has been making many attempts to safeguard the Russian economy for the inevitable global economic crisis in the near future. This includes a backup plan which entails implementing the gold standard to validate the Ruble (₽) in the case Russia needs to withdraw from the world bank.
In the past 8 years alone, Russia’s GDP has increased 70%, industrial growth at 75% and investments by 125%. Since 2000, the percentage of the population in poverty has decreased from 30% to 14%, and the average income increased from ₽ 2,200 to ₽ 12,500.
As Russia rises onto the world stage as a primary economic player, GDP is only expected to continue to rise in the coming years.