Haley Dodge – Guest Contributor
15 September 2017
It is highly likely Chinese and Russian blockchain companies are pursuing a cryptocurrency alliance to build upon agreements to develop a new Russian ruble-backed cryptocurrency while furthering a strategic partnership between Chinese and Russian blockchains. Despite Chinese authorities stopping the proposed alliance, it is likely the ban on initial coin offerings (ICOs) needing to fund the alliance is temporary.
The Chinese cryptocurrency trade platform C2CX signed an agreement on 12 September with Russian-led cryptocurrency bank CyberTrust to launch CyberEX. CyberEX will be the first joint-operated cryptocurrency exchange supported by the Russian ruble. C2CX is providing USD 80 million working capital and CyberTrust is providing USD 10 billion in cryptocurrency to promote the successful start-up of CyberEX.
In addition to the agreement, the CEO of the Chinese blockchain Metaverse Foundation Eric Gu stated that he, “plans to develop further strategic partnership ties with the Russian blockchain KICKICO platform”. The alliance would include conducting 100 ICO projects both in China and Russia, adapting and developing blockchain technologies to serve private and large institutional investors.
In regards to funding the cryptocurrency, Hu Bing a researcher at the government-supported Institute of Finance and Banking explained that China’s ban on ICOs is only temporary. According to Bing, the Chinese government will resume ICOs once they have completed the appropriate regulatory framework and policies for ICO investors and projects.
Other factors that might affect the Chinese-Russian cryptocurrency alliance include the Chinese Securities Regulatory Commission and the China Banking Regulatory Commission halting the partnership between Metaverse and KICKICO. In more than 40 platforms, ICO activity has been shut down, suspended, or in limbo since the enforcement of the ban on 4 September.
The top two U.S. competitors China and Russia, join together to lead the way in cryptocurrencies. As the popularity of electronic payments and digital currencies grow, government involvement is necessary in order to maintain economic stability amid financial fraud and cryptocurrency scams.
The analytic confidence for this assessment is moderate due to the complexity of the issue and lack of use of a structured analytic technique. Source reliability is high with little conflict among sources and an easy to meet deadline. The analyst worked alone on this assessment and had minimal knowledge of the subject matter.