When governments become a support mechanism rather than a controlling machine, the results for research and development could be huge. This is what seems to be happening as Russia, a country known for its extensive control of digital assets, gave permission to researchers and technology entrepreneurs to test their currencies in the Russian market.
The four regions where these tests would be run are the country capital Moscow, Perm Krai, Kaluga Oblast and Kaliningrad Oblast. Once they do well in the tests, the cryptocurrency industry will find a new home, and the possibility of more countries joining in would be increased.
However, there are bounds that they have to keep in. There will be a monitoring system that will make sure that everything that happens goes through the government and there are no illicit and illegal funds making the rounds. This is a reasonable step considering the security that cryptocurrencies provide. If the wrong people get to use it, there will be no way of tracking them.
The people responsible for drafting the bill said that they wanted people to have more freedom with their money but doing so without providing the required guidelines would only make it worse. They also said that it is the absence of these laws that make startups in the tech fail. With a proper, lawful frame overlooking the industry, much loss could be avoided.
Advantage of Sandboxing
Sandboxes like these in countries will help the governments draft proper laws. Laws that make it easier to benefit from the potential of such technologies while also providing safety against all the threats. It will limit it to a certain percentage or a certain area of the country without putting the whole economy in jeopardy, just like the way Russia is going to do.
A lot of countries throughout the world are showing interest in cryptocurrencies and crypto assets lately. In a similar fashion, countries will opt to try these technologies and test them before they are unleashed into the market.
The Sandbox protocol allows industries to grow at their own pace while the governments take care of all legal things.
President Putin made it Happen
It was none other than the President of Russia himself who ordered the advisories to adopt laws and regulations on the digital economy. A bill had been passed a long time ago, but the final voting for the same had been postponed many times and is finally coming to fruition. Now, all we can do is see where Russia goes from here and if it takes crypto with it.