Now, let’s have a look at what we have installed for today. First up, According to be in crypto, it appears as though Russia is considering creating an offshore financial center on Bolshoy Ussuriysky Island. According to the head of the Agency of the Far East for Investments and Exports (IPA), Leonid Petukhov, there is currently a proposal on the way to create this financial center. The center will be on the border of both China and Russia and would be a hub for cryptocurrency trading, crypto-related stock exchanges, and other foreign markets.
So where is the Bolshoy Ussurisky island located? It’s on the Amur River and is considered as a prime location for the cryptocurrency trading hub. Since it’s on the Chinese-Russian border, it would be a perfect location to allow a high degree of collaboration between both countries.
Russia currently has two other districts that are financial hubs. One is located on the Russky Island in Vladivostok, while the is on the Oktyyabrsky island in Kaliningrad. These districts have special exemptions – residents here are fully exempt from income tax when it comes to any dividends and profits from shares of foreign companies. But there isn’t any hub for cryptocurrency trading just yet – if the proposal on the Bolshoy Ussurisky island goes through, it will be Russia’s first crypto hub. Will Russia’s crypto zone look like Philipines Cagayan Special Economy Zone that has grown to be a massive crypto hub in the country? If so Russia will be doing very well. The Cagayan Special zone has done extremely well seeing the biggest jump in investments over the last two decades.
MoneyGram Executive Predicts Cryptocurrency Takeover
Now moving on, you guys can see here on The Daily HODL that, the MoneyGram Executive predicts a cryptocurrency takeover after Internal tests with Ripple and the XRP token. Now Youri Bebic, MoneyGram’s global head of product and innovation believe that there is a highly probable chance that cryptocurrencies will be the medium people use to transfer money across borders in the future.
In 2018, MoneyGram partnered with Ripple to test the ability of XRP to reduce costs and increase the Speed of Payments. He mentioned:
We did a proof of concept with one cryptocurrency. We made a press release so I can answer that. That was with Ripple, where we are trying to see if we can use cryptocurrency for liquidity in the markets.
Bebic also mentioned that the worst kept secret about international remittances it that when it comes to value, it isn’t moving across borders when someone sends money overseas. The company pre-funds banks accounts all over the world, and then do a value transfer. But cryptocurrencies could really revolutionize the game. You don’t need pre-funded bank accounts anymore and you could send value across borders in an instant.
So cryptocurrency, if they all add scale, and if the markets are there with liquidity, it could actually allow us to eliminate the pre-funding of fiat, what we call regular currency in a particular country, and then use the exchanges to sell cryptocurrency against local currency and deposit that into the bank account or give it in cash for our users. So we are obviously looking into that. We are running some pilots and trials. And I do believe it is highly probable that this is the way money will move in the future.
Cryptocurrency Can Purchase Oil In the Future
And finally, the last news item for today. According to Crypto Globe, it looks like cryptocurrencies could be used to purchase oil in the future. Igor Sechin, the head of Russian oil Giant Rosneft, recently revealed that there is a possibility that the company will purchase oils using cryptocurrencies. Sechin mentioned that the oil industry’s acceptance and knowledge of the cryptocurrency industry are increasing, especially since tech giants like Google Amazon are keen on exploring and moving into the energy sector. While speaking at the St Petersburg International Economic Forum Sechin even suggested that Facebook’s Global Coin could be potentially used to purchase oil by the barrel in the future.
But at the same time, he also mentioned that:
Greater flexibility often means greater volatility, and digitalization creates risks for maintaining commercial secrets and leads to the need to create new regulatory mechanisms, additional reservations. Today, technology companies do not have quality answers to these fundamental questions.
So guys, what are your thoughts on these news situations?
Do you think Russia will move forward and create the offshore financial hub for crypto?
And will XRP dominate the remittances industry in the next few years?
And finally, do you think we will be seeing more crypto transactions in the oil industry?
Let me know what you guys think in the comments below!
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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing. Cryptocurrencies are a very risky investment, never invest more money than you can afford to lose.