Russian Billionaire Vladimir Potanin Says Tokens Will Displace Cryptocurrency

Vladimir Potanin, Russia’s second richest man, and an investor of Atomyze platform for the digitization of physical assets so that users can source, trade and track commodities, said on Monday that tokens and digital ruble initiatives could replace the use of private cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. The billionaire made such comments after Russia's Central Bank gave the local blockchain platform, Atomyze a license to issue and exchange digital financial assets. Atomyze platform uses blockchain to digitize real assets (like real estate or metals) and convert them into tokens that can be easily exchanged. This means that the firm is now able to organize the circulation of tokens backed by goods or money on its blockchain platform. After the approval, Potanin talked about how regulated tokens and state digital currencies are part of the future of financial revolution.

The Russian billionaire said that digital ruble and regulated tokens will enable the Central Bank to promote new technologies without the risks associated with cryptocurrencies like Bitcoin. “Unlike some cryptocurrencies, platforms like Atomyze offer high-quality and secure digital goods to consumers and can drive unreliable products out of the market.” Potanin stated.

Additionally, the renowned entrepreneur stated that he understands the position of the central bank, which sees threats and risks posed by unregulated crypto assets. He mentioned that such challenges would be resolved by regulated tokens or digital assets, which are like a contract that makes it possible to receive a service or product in digital form using the blockchain that verifies and tracks every transaction. As a result, Potanin concluded that the development of regulated tokens, digital assets, tokenization Tokenization Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Read this Term and the digital ruble can render the use of private cryptocurrencies irrelevant. He cited that Atomyze platform will begin issuing tokens that would enable users to buy physical goods such as real estate, precious metals and other goods exchanged via blockchain.

Solution for Crypto Problems

The sentiment by Potanin mostly coincides with the Bank of Russia. Last month, Russia's central bank proposed a complete ban on the use and mining of crypto assets on Russian territory. The regulator stated that cryptocurrencies pose threats to citizens' wellbeing, financial stability and monetary policy sovereignty. Russia has argued against crypto coins for many years, stating that they could be used to finance terrorism or used in money laundering. In 2020, the country gave cryptocurrencies legal status in 2020, but banned their use as a means of payment. The Russian central bank is preparing to launch its digital ruble, central bank digital currency (CBDC) as part of its objective to develop the national payment system.