VKontakte (also known as "VK"), which is Russia's version of Facebook, is planning to issue its own cryptocurrency. The project is currently under development, but a final decision has not yet been made. The social media firm wants to create a cryptocurrency that all its…
VKontakte (also known as “VK”), which is Russia’s version of Facebook, is planning to issue its own cryptocurrency. The project is currently under development, but a final decision has not yet been made.
The social media firm wants to create a cryptocurrency that all its users can implement, according to Russian news website RNS.
VKontakte claims it has 97 million active monthly users.
If VKontakte is successful in rolling out its own cryptocurrency, users will be able to earn crypto for sharing interesting posts and accumulating “likes.”
They can also use the digital currency to buy and sell goods to each other and to transfer funds using VK Pay. VK Pay is the cashless money transfer system that VKontakte launched in June 2018.
However, it’s unclear how VKontakte’s cryptocurrency would be received in Russia, which has a lukewarm attitude toward virtual currencies.
As CCN reported, Russian president Vladimir Putin is a bitcoin skeptic, although he has warmed up to crypto a bit.
Putin recently set a July 2019 deadline for crypto regulations to be established in Russia. However, it’s questionable whether these rules will be rolled out this year since this initiative was previously delayed.
Last year, Putin set a July 2018 deadline for the implementation of guidelines for bitcoin trading, initial coin offerings, blockchain, and crypto mining. But those regulations never materialized.
Moreover, Elina Sidorenko of the State Duma says Russia will probably not adopt cryptocurrencies for at least the next 30 years.
Sidorenko is the chairwoman of an interdepartmental working group of the State Duma for managing the risks of cryptocurrency turnover.
“The Russian Federation — like any other country in the world — is simply not ready to combine its traditional financial system with cryptocurrencies.”
“And to say that this idea can be implemented in Russia for at least the next 30 years is unlikely.”
Facebook sent shock waves through the cryptocurrency industry when a report exposed its ambitious plans to create a proprietary stablecoin that will enable its 2 billion monthly users to transfer value to each other.
Because of the massive size of the global Facebook network, the social media monopoly could actually operate like a small, independent economy.
However, Facebook has been roiled by scandals amid revelations that it has been selling private user data for years — without users’ consent.
As a result, the U.S. Federal Trade Commission is considering slapping Facebook with a “record-setting” fine.
Given the uproar over accusations that Facebook has repeatedly violated user privacy, it’s unclear how willing its users are to entrust the platform with their financial data.
Moreover, a former Harvard classmate of Mark Zuckerberg claims that Facebook has grossly inflated its user statistics and actually has 1 billion fake accounts.
So in addition to violating user privacy, the social media monopoly has committed mass fraud, according to his bombshell allegation.
“If, as we allege, Facebook is lying about its fake accounts, that means that it could be liable to its advertising customers for billions of dollars in ill-gotten gains — over and above what advertisers have already sued over.”
Last modified: January 10, 2020 3:31 PM UTC