The Central Bank of Russia has joined the list of other central banks who are working on a national digital currency system. In addition, reports also suggest that the CBR is drafting new regulations for cryptocurrencies such Bitcoin, Ethereum, Litecoin, and others.

Olga Skorobogatova, deputy chief of the Bank of Russia, recently said that the central bank is exploring the possibility of a national digital currency. Earlier in May, she stated that the new digital currency legislation could be introduced in the Duma as early as June.

EconoTimes spoke to SONM CEO Sergey Ponomarev on these latest developments from Russia. Ponomarev said that new digital currency regulations is a very positive step not only for Russia, but also for the cryptocurrency market around the world.

“Russia's efforts to regulate digital currencies will not only help attract some of the world's most exciting startups to its borders, but they will also aid in the global effort to legitimize cryptocurrencies as a means of payment and store of value. Legally recognizing cryptocurrencies also validates the blockchain technology behind them, which has the potential to make processes like legal agreements and supply chain more efficient and cost-effective”, he said.

He expects the new regulations to place Russia at the forefront of the global race to advance cryptocurrencies, placing them in a position to attract some of the world's most exciting startups in the next few years.

“It's clear that Russia's leaders have acknowledged the many positive benefits of cryptocurrencies and the blockchain technology that backs it. In Russia, digital currencies can provide a stable solution to problems like money laundering and assist small businesses, even those outside the blockchain space, in obtaining loans”, Ponomarev added.

Commenting on the central bank’s efforts to digitize the national currency, he said:

“For the growing blockchain community in Russia, including blockchain companies like SONM, a national cryptocurrency would make fundraising and day-to-day operations of their businesses much easier. It's currently very difficult to exchange cryptocurrencies for rubles, so creating a national cryptocurrency would help existing blockchain companies grow and also attract new companies in the space to Russia's borders.”

SONM (Supercomputer Organized by Network Mining) is Russian company that has developed a universal fog supercomputer powered by blockchain technology. Ponomarev explained:

“SONM is a fog supercomputer organized by network mining, which has the potential to revolutionize the computing market and find a secure place beside global enterprises like Microsoft and Amazon. SONM fog technologies are more secure, faster and cheaper compared to cloud services. They represent a way to perform both deterministic and non-deterministic tasks, including video streaming, website hosting, graphics rendering, and scientific calculations. Entering the cryptocurrency market represents the perfect opportunity for SONM to join a rapidly-growing market.”

When asked about the company’s plans for 2017, he said:

“We've already launched our alpha version to demonstrate the opportunities of the platform, and chose the Quake multiplayer shooter to demonstrate how the platform will work. We have already tested the combination of peer-to-peer technologies on the Yandex.Cocaine platform to fulfill non-deterministic tasks. Later on, in September, we'll integrate PayOut decentralized application into the platform, introduce DAO contracts on the smart contract level, create a special browser for sites, handle messages optimization, launch DAO & Dividends payout, and improve UI and UX for all sides and general productivity.”

Lisk CEO Max Kordek and former Coinsetter and Cavirtex CEO Jaron Lukasiewicz, have recently joined SONM’s Board of Advisors. SONM will launch its Initial Coin Offering (ICO) on June 15, 2017 and issue tokens of the same name on the Ethereum blockchain.