A well-known Russian bank, Tinkoff Bank, recently announced plans to release its very own digital currency.
Governments across the globe have already expressed interest in issuing their very own digital currency. Banks worldwide have also expressed enthusiasm in using what blockchain technology has to offer. Russia, however may prove to be a world leader in this regard.
The Russian bank, Tinkoff, recently announced their very own digital currency, TinCoin, which will be released in the near future. While the concept of a bank adopting a digital currency is an interesting one, the exact details are still vague. Currently, it seems that the concept is mainly speculation by the founder of Tinkoff, Oleg Tinkov.
While it seems logical that banks would want to create their own digital currencies, it remains unlikely that banks will actually create such currencies. Most banks don’t have any real reason to invest the time and capital in developing a new digital currency, especially since cryptocurrencies and bank-issued digital currencies are vastly different.
However, banks could be a leader and game changer when it comes to digital currencies. A bank-issued digital currency has the potential to become much more successful than cryptocurrencies. This is due to the fact that people are more likely to be ready to invest in a bank-endorsed currency than in an ICO. For current users, little will change other than bank-issued currency being entirely digital. The convenience for the users as well as the added stability could make digital bank currencies a great competitor for cryptocurrencies.
Russia’s Tinkoff bank may be the very first bank to explore this option. Tinkov has been dropping hints that TinCoin may be released sooner than expected. This will be an ambitious move if Tinkoff can pull it off. Tinkov believes that the time is right to explore this option.
Despite Tinkov’s hints, there is still no real information as to what TinCoin entails. Tinkov has not revealed any information as to the structure or uses of the currency. Since Tinkoff is not Russia’s central bank, many are skeptical as to whether this ambitious endeavor will actually happen or prove to be successful in the future.
Issuing TinCoin could be a very ambitious. Despite the fact that Tinkoff bank does not compete with state banks, it is a very controversial move for them. Currently, no other bank has ever issued a digital currency or has announced to be developing one.
While this situation may change in the future, the lack of information on TinCoin makes it unlikely that this will be a viable digital currency, at least in the near future.
Tinkoff is a member of the Russian Fintech Association, which has always been very invested in the latest financial technology, especially blockchain technology. While TinCoin remains to be nothing more than speculation, Russia’s devotion to financial technology might make it a world leader in the financial world in the future.