Russian billionaire Vladimir Potanin is aiming forward to create cryptocurrency tokens backed by palladium.The world’s top palladium producer is in talks with Swiss authorities about issuing tokens by its Switzerland-based palladium fund and plans to launch several digital platforms.

About Potanin and Palladium

Vladimir Olegovich Potanin (Владимир Олегович Потанин) is a Russian billionaire, entrepreneur and oligarch who acquired his wealth notably through the controversial loans-for-shares program in Russia in the early to mid-1990s. Potanin, is CEO of the Russian nickel and palladium mining and smelting company MMC Norilsk Nickel PJSC (Nornickel).

Palladium is considered precious of the precious metals and is 30 times as rare as gold. It has a variety of used cases in industries including dentistry, electronics, jewelry, catalytics and photography.

Also Read: Hong Kong Issues Updated Guidelines for Security Token Offerings

Development of Digital Platform

Nornickel, is an arch rival of the firm ‘Vale SA’. Further, to strengthen its stance as the top nickel producer the firm is also working on a digital platform for transactions within the company between its own divisions. This would allow Russia’s central bank to test regulating blockchain-type systems in a particular company, without affecting the broader economy. The tycoon is also working to develop a digital platform for intellectual property, where startups can offer their ideas, including to industrial companies. Notably, New York-based firm BCG Digital Ventures is ready to help with the development of the venture.

Regulatory Roadblock

Potanin, is in continuous touch with lawmakers and the central banks to create further framework for regulating digital platforms. To move forward with the development of the platform, Russia needs to pass a law on digital financial assets first, for which the next hearing on that has been postponed until April.

The main problem with the current draft with the lawmakers is that it says, digital platforms should be run by banks and exchanges only. Potanin believes that this should change because such platforms like these can be used to do many things, so it won’t always just be in the interest of banks and exchanges. He hopes that a favorable bill will be passed in summer and they can start the project by year end.

If Russia fails to adopt the law, Potanin will continue pursuing his ideas in other jurisdictions outside the country. He concluded that if the platform becomes a success, the effects will be enormous.

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