Cryptocurrency-backed Palladium to be tabled by Russian billionaire

Vladimir Potanin, the billionaire CEO and chairman of the Board of Management at Norilsk Nickel, the world’s largest producer of palladium, is looking to include cryptocurrency tokens for trading palladium, stated a March 29 Bloomberg report.

Norilsk Nickel operates a palladium fund in Switzerland and is in talks with Swiss authorities to issue tokens backed by the rare metal. Potanin further added that this trading concept would be expanded to include other trading concepts.

He stated:

“People more and more tend to use decentralized networks and platforms that don’t have a main operator. We want to be active participants of this process.”

Blockchain, the technology underpinning the cryptocurrency realm has found its way into several industrial and commodity sectors. This system of data tracking and administration leads to cost reduction and provides a seamless way of tracking materials on the supply chain.

The customers of Norilsk Nickel are on board this concept of cryptocurrency-traded palladium, confirmed Potanin who had mentioned the “idea” to them earlier. The CEO of the metal producing company believes that the infusion of digital assets in the transaction of metal trading is “simpler and more convenient”.

Unwanted volume, especially in the metal trading industry, hampers the overall inventory of the client. If the system mirrors the decentralized currency space, this unwanted volume could be sold easily to other parties, stated the billionaire.

Potanin is also lobbying the Russian government to set-up a concrete framework for the regulation of digital currencies in the country. The latest information from the Kremlin suggested that a hearing to discuss crypto-regulation had been pushed to April 2019.

The Russian billionaire hopes that a positive bill is approved in the summer so that his operations can commence by the close of the year. Potanin added that if the bill is passed by lawmakers, the effect of the same would be “enormous” for the country.

However, despite the imminent hearing and the prospects of a law that would acknowledge the country’s growing digital assets industry, Potanin laments the nature of operation of such a platform. In his opinion, the platform will be run by banks and exchanges which will limit the scope of operations.

To counter this bank-exchange duopoly on the country’s digital assets industry, Potanin is working on an intellectual property digital platform. This platform will pool ideas from industrial companies and start-ups to provide a knowledge resource for crypto-centric companies.

Brazillian mineral-giant Vale SA has also been mulling an entry into the digital assets platform, however, this will only serve the company’s internal functions.

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