Russia and Abkhazia will create a cryptocurrency hub

The republic is already discussing the legislative framework for the new project

10.02.2023 - 11:30

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2 min

What’s new? An IT cluster may appear in Abkhazia for the development and implementation of various digital solutions. Negotiations on its creation are already being held between representatives of Russia and the leadership of the republic. Alexander Brazhnikov, executive director of the Russian Association of the crypto industry and blockchain (RACIB) told Vedomosti.

News on the Vedomosti website

What else is known? According to Brazhnikov, if the project is implemented, Abkhazia may “turn into a digital mini-Switzerland for Russia and its friendly countries.” At the same time, the republic’s leadership has already started preparing a legislative framework to legalize cryptocurrencies, mining, and other areas of the digital economy.

Brazhnikov added that already this year Abkhazia may launch its own blockchain, on which digital financial assets (DFAs), non-fungible tokens (NFTs), and stablecoins will function.

Despite the advantages of locating a crypto hub in Abkhazia, such as using the ruble as the national currency and trading with countries friendly to Russia, experts believe that the status of the republic may be the main problem for creating infrastructure on its territory.

Until December 31, 2022, there was a ban on mining and importing cryptocurrency mining rigs in Abkhazia. The restriction was imposed due to power shortages and accidents at power plants.

Earlier, the Russian authorities offered Cuba to create a settlement center based on the digital peso to protect the country’s financial system from external sanctions.

In July 2022, the Honduran authorities launched a crypto hub in the tourist city of Santa Lucia together with Blockchain Honduras and the Coincaex crypto exchange. Authorities in Fukuoka, Japan also work with blockchain company Astar Japan Labs to create the country’s largest Web 3.0 hub. More than 45 companies may join the project, including Microsoft and Amazon.

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