NEO has seen quite a spike over the past day, whilst this isn’t expected to last, it seems to have had a very positive impact on the market and of course, is helping to spread some much-needed optimism about the NEO project. Through the end of 2018, NEO started to see a slight resurgence amid rumours that the Russian Association of Cryptocurrency and Blockchain had requested a formal partnership with the team behind the NEO project. We should note that this association is of course government backed and led, therefore it was no surprise when the rumours started to stipulate that the request has been made by President Vladimir Putin himself.
Since these rumours surfaced, we have started to see further speculation arise regarding government level Russian interest in NEO, according to Ethereum World News, who have stated that the sudden 15% spike in the value of NEO, could be down to this.
There are a few rumours surrounding why the government are after NEO in this sense, though the majority of them point towards potential US sanctions, so, this is when it gets political and complicated. According to Ethereum World News, Vladislav Ginko, a lecturer at Moscow’s Russian Presidential Academy of National Economy and Public Administration has said:
“Because of US sanctions Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins. Central bank of Russia sits on $466 billion of reserves and has to diversify in case there are limited opportunities to do it (in the future) … I believe that the Russia (Government) will start diversifying its reserves with Bitcoin in February this year when US Congress will introduce a new sanctions against Russia.”
In more simple terms, the community seems to believe that the Russian government may have moved a large chunk of their Bitcoin reserve into NEO, as a result of this partnership request, in order to help bypass looming US sanctions. Is this really the case, who knows, but it’s worth thinking about right?
The really exciting prospect here is that if Russian authorities are indeed working with NEO, we could see a huge wave of NEO adoption in Russia during 2019, if this is the case, it would lead a very exciting new path for NEO adoption across the rest of the world, and will also help boost the value of NEO, pleasing those investors who have been involved from the start.
For now, we just need to wait and see what happens, this spike won’t last forever, but at the very least, it’s great to see NEO making waves.
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