Moldova’s Breakaway Region of Transnistria Considers Creating Its Own Cryptocurrency

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Transnistria, a breakaway region in Moldova, may introduce its own cryptocurrency, according to the statement of Sergei Russov, the deputy head of the unrecognized state’s Republican Bank of Transnistria.According to Russov,  the bank is already studying blockchain technology, and creating a national cryptocurrency that has certain advantages over traditional money could be on agenda

“[Cryptocurrency] has to be mined, as the number of coins is limited but, on the other hand, sufficient to back the deals considering the prospects of their continuous growth. Cryptocurrency’s authenticity is easy to check. Cryptocurrency is very convenient as a means of payment, as transactions are instantaneous and have nearly zero prime cost,” he wrote.

Notably, the Republican Bank’s spokesperson jumps to a conclusion on some sort of “centralized mining” in his discourse on tracking cryptocurrency payments. He believes cryptocurrency is a perfect means to both store value and tackle money laundering and fighting terrorism financing.

“For that reason, the Republican Bank of Transnistria is currently studying possible options of using a cryptocurrency. It is quite likely that Transnistria’s cryptocurrency as a payment system for title signs (like e-wallets for WebMoney, Yandex.Money, etc.) is a little ways down the road. After that, cryptocurrency will be able to act as a fiduciary money,” Russov stated.

Transnistria’s only official currency and payment means is so-called “Transnistrian ruble”. Its exchange rate is strictly regulated by the Republican Bank. For over two years, despite all the turmoil on global financial markets, the rate of Transnistrian ruble vs USD was artificially held at the rate of 11:1. The Republican Bank of Transnistria has “let it go” a bit only a few months ago. Currently the rate stands at 14:1.

Earlier, another breakaway region, so-called People’s Republic of Donetsk (Ukraine) has created a working group seeking to integrate cryptocurrency in the region’s economy. In particular, it studies using a traditional bitcoin wallet associated with an individual or a legal entity, as well as employing a combined scheme involving creation of a local cryptocurrency for internal cashless settlements and usage of bitcoin for external transactions.

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