Sergey Glazyev, advisor to Russian President Vladimir Putin and a member of the National Financial Council of the Central Bank of Russia, met Huobi founder and CEO Leon Li on the 17th of September at Huobi’s Beijing offices.
The meeting was to discuss blockchain technology with Glazyev seemingly trying to tempt Huobi to move to Russia or to set-up a branch there. Glazyev said:
“The combination of Huobi’s experience to implement in Russia will have a positive effect on Russia’s economic growth. Therefore, I believe this is a great opportunity to explore this area.”
Huobi is one of the biggest crypto exchange with considerable volumes. A fierce competitor of OKEx, they came into prominence in 2013-14 when China fell in love with cryptos until the Chinese Central Bank intervened.
Why exactly Glazyev wants them to set-up a branch in Russia, is unclear, but since last year, Russia has been looking at blockchain tech at a high level. Glazyev said:
“Digital assets also enhances the development of blockchain technology. They are inseparably interconnected.
I hope some advanced countries will use blockchain and digital technology in their national market organizations, because they can help make the money market more sustainable, transparent and less risky.”
Huobi’s expertise is more in connecting cryptos to fiat pipelines, rather than in utilizing blockchain tech itself.
It appears thus Russia wants such pipeline within its own jurisdiction, presumably so that they can more easily access cryptos and can more easily interchange them.
It might also be the case so that they can offer tokens which other exchanges or markets do not provide perhaps because of US pressure.
One easy example would be something like Petro, but perhaps an Iranian version or maybe even Russian tokenized bonds.
Another reason might be so that they can more easily bypass SWIFT or even the entire banking system by say buying eth or bitcoin in one exchange in one country, then sending it to another exchange in another country where it is then converted into national fiat.
This can now be achieved more easily by utilizing stablecoins, like DAI or Gemini Dollars, thus avoiding any considerations of volatility.
Something like DAI can moreover be forked to be pegged to rubbles, gold, or whatever else, thus needing not face the volatility of the dollar either.
For that, of course, one needs exchange points which may perhaps be why this meeting took place, but we are guessing as we do not know what may have been the real reason. Glazyev said:
“The cryptocurrency industry is still booming and expanding, and almost every country on the planet is making an attempt to grow the crypto-space.
If Huobi Group can set a good example for the market, it will be of great help to Russia’s national legislation on blockchain cryptocurrencies.”