Cryptocurrency

The ”Facebook of Russia” Reportedly Plans To Launch Its Own Cryptocurrency for its 97 Million Users

The ”Facebook of Russia” Reportedly Plans To Launch Its Own Cryptocurrency for its 97 Million Users

The Russian social media giant VKontakte, commonly referred to as ”VK”, is reportedly hard at work at developing a cryptocurrency. This comes amid reports that fellow social media behemoth Facebook is also investigating the possibility of issuing a cryptocurrency.

Users will reportedly be able to earn cryptocurrency to buy and sell goods using VK

Furthermore, this report was first shared by the Russian news outlet RNS. In addition to that, VK is reportedly looking to create a cryptocurrency that can be used by all its users. For reference, VK boasts a sizable monthly active user base of 97 million users.

According to the RNS report, users will supposedly be able to earn cryptocurrency through interacting on the site. For example, it is mentioned that users could get cryptocurrency from receiving likes or sharing interesting posts.

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Moreover, it is said that users will be able to use the digital currency in order to purchase and sell goods to one another over the platform, as well as to send funds through the use of VK Pay. VK Pay is an existing cashless money transfer system integrated with the VK platform.

Nevertheless, it should be noted that the RNS piece also adds that a final decision has not yet been taken regarding whether VK should launch the cryptocurrency or not.

That functionality for the technology is reportedly currently being developed bodes well for fans of both VK and cryptocurrency. Furthermore, VK holds significant influence in Russia, and VK’s launch of its own cryptocurrency could subsequently further the adoption of the technology as a whole.

Is Russia ready for a ”VK Coin”?

With that being said, however, Russia has previously had a somewhat half-hearted approach to cryptocurrencies.

The Russian president Vladimir Putin has previously expressed some skepticism towards Bitcoin – although he recently set a July 2019 deadline for establishing cryptocurrency regulations in the vast nation.

Nonetheless, Elina Sidorenko, the chairwoman of a group within the Russian State Duma looking to manage the risks of a cryptocurrency turnover, has warned that Russia may not be ready to adopt cryptocurrencies for many years to come.

”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.”

VK is oftentimes referred to as the ”Facebook of Russia,” and this seems to be an apt epithet in this case as well. Specifically, reports have been insistent that Facebook is currently exploring the possibility of launching its own proprietary stablecoin.

With that being said, it remains to be seen whether VK can beat Facebook to the launch of a social media platform-based cryptocurrency.  

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