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Is Russia the Reason Ethereum Is Climbing?

Written by Alexandra Perry
Posted June 5, 2017 at 5:03PM

We are getting close to $250. As I type this, Ethereum is sitting at $247.

After a weekend surge, Ethereum moved from $215 on Thursday to our current high.

But what's behind the surge? As always, we are looking at increased investor confidence that stems from a few different sources.

And a lot of that investor confidence is coming from an unlikely source: Russia.

Putin Endorses Ethereum

The International Economic Forum took place over the weekend, coming to a close in Saint Petersburg, Russia. The event is a financial playground for hundreds of businessmen and 26 countries — all devoted to developing the latest technologies and finding answers to emerging issues.

This year, $30 billion in investment funds were raised. But the star of the show wasn't a company or stock. It was Bitcoin and blockchain technology.

Multiple parties at the forum praised blockchain as an answer to many of the ills plaguing our financial system. More importantly, conversations focused on how blockchain could be applied to Russia's financial systems.

And world leaders are about to get in on the action.

Vladimir Putin endorsed Ethereum this weekend. Russia's president became a fan of the Ethereum blockchain after meeting with Ethereum creator Vitalik Buterin.

Buterin and Putin discussed the application of technology across the country, and Putin committed to developing Russian businesses through blockchain technology in the coming years, with a specific focus on Russia's banking systems.

This is yet another endorsement for Ethereum that has sent the price soaring.

Putin's and the International Economic Forum's endorsement of blockchain follows other digital currency news from Russia.

Russia May Be the First Country With a National Digital Currency

Russia may be the first country to develop its own digital currency. In fact, the move seems to be a long time in the making.

The deputy chief of Bank of Russia, Olga Skorobogatova, made the following statement: "Regulators of all countries agree that it’s time to develop national cryptocurrencies, this is the future. Every country will decide on specific time frames. After our pilot projects, we will understand what system we could use in our case for our national currency."

Along with her statement, Skorobogatova announced that Bank of Russia would like to work with other countries in the European Union to further develop blockchain technology.

In the end, these events are good news for people in the digital currency realm.

And it isn't just happening in Russia.

Multiple World Powers Are Embracing the Ethereum Blockchain

In the last couple of months, we have seen dozens of institutions come forward and embrace the Ethereum blockchain. The Enterprise Ethereum Alliance (EEA) is slowly growing in numbers. Major banks and technology companies are flocking to blockchain in hoards.

Now, Russia has made a solid commitment, joining other state governments that have promised to innovate their financial tech using the Ethereum blockchain.

China is already experimenting with Ethereum to create a digital yuan. This would transform a somewhat limited static digital currency into a dynamic code.

China's central bank has also expressed an interest in developing its own digital currency. 

And then there is the United Kingdom, which is testing its own digital asset. This digital asset will represent 1 gram of gold held by the mint. Currently, the Mint is working with Bitcoin company BitGo to further its technology.

All these moves have set the stage for a blockchain revolution. We are teetering on the edge of widespread adoption.

Now's the time to be looking at blockchain technology and the Ethereum blockchain, specifically. Each financial institution to successfully adopt blockchain technology will trigger a wave of similar adoptions.

And early investors in blockchain technology are going to benefit.

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