Blockchain Enhancing National Security & National Interests or A Ticking Timebomb for Moldova?

One would think that the small landlocked country of Moldova would welcome transparency within its government, or is it the ticking timebomb its common citizens have been waiting for to combat corruption and money laundering? NO, As the population is reducing in alarming numbers.

Recently, different ministries within the government have now woken up to Bitcoin and it’s in the headlines with a lot of inaccurate information; clearly due to their lack of knowledge and information into the technology despite the fact that two years ago now a UK National Co-founded Digital and Distributed Technology Moldova Association was set up as a vehicle to educate them about Blockchain Technologies and Industry 4.0.

Quote “UK National Lee Gibson Grant”

When I read this Article about Bitcoin being a threat to national security and seeing it linked to Transnistria and Mining I could not stop laughing just at the Title but, as I read a few more lines, it was clear that either the article is fake media or, even more probable, the author has no idea whatsoever about the subject matter that he is trying to write about.

Yes, NBM issued a warning which I requested in December 2016 as NBM had not issued such a warning and, in order to work in Moldova with blockchain technology, I think its best, and required, to inform the General public of the Risks involved and you can find the confirmation letter I received from NBM as I opened up Moldova’s 1st Crypto Exchange.

So, I am going to highlight some facts to correct this misleading article:

    • Mining power in Transnistria is 18 to 28 MW in consumption.
    • They do not have 1000s of computers.
    • They have less than 30 containers using from 0.7 to 1.5 Mw each.
    • Their techno-park is hilarious, and no legitimate investor would risk their money in it; it does not comply with global standards nor does it have resources to provide KYC/AML on businesses or individuals alike.
    • The government cannot guarantee any investment; “Unless Moscow does, but then who trusts Moscow?”
      • Those that know about Transnistria also have the rumours that the Moldovans and Ukrainians have made a deal with Transnistria; “How do you think they can get the Mining Hardware into Transnistria?”
  • Transnistria has not had investment of 70% of China’s GDP, more like 9 million USD.

I went to Transnistria and met with their Prime Minister, their Minister of Finance and the head of their central bank two years ago where we discussed ideas of legislation and about a Free Zone Creation but I also made it very clear at the time that getting tied up in Mining would have been the worst possible direction to take.

I also mentioned to NBM & MEI early Last year that it’s a Ticking Timebomb yet to come, but clearly it was not of importance to them at that moment in time. “What a surprise that it’s been the headline news now for the past few days!”

Now let’s get to some more facts in the article which are as follows:

  • Bitcoin was not estimated at 1 trillion in 2007 as it did not even exist until 2008.
  • If the $1 billion would have been stolen from NBM in Bitcoin it could have been traced and tracked; “Unlike MDL that can vanish via the financial institutions and that’s why using the blockchain public ledger would actually be enhancing national security.”

An example case – why Crypto currency/Blockchain gives added value to national Security and Anti-Corruption:

Prosecutors Seek 7-Year Sentence for Corrupt Silk Road DEA Agent. Carl Force IV, the US Drug Enforcement Agency (DEA) agent who pled guilty to charges of extortion, money laundering and obstruction of justice.

This was achieved due to the underlying technology bitcoin uses, which is the Blockchain, as a method of transaction and also as a public ledger as this is seen publicly.

Dear people of Moldova and Transnistria the FBI Cyber Crime unit based out of Romania is Monitoring Crypto Currency Transactions “BIG BROTHER IS WATCHING YOU”.

So, this means Transnistria or Bitcoin is not a National Threat as every bitcoin that is mined is already being tracked. This is why no Western mining business would operate in Transnistria as the west has the tendency to block personal and business accounts connected to Crypto Currency. So, why would they risk their 5 cents offer for power when you can legally pay 3 cents in Moldova and its generated from Clean Renewable energy sources as well.

And now we come to the second article Negrutsa: The production of Crypto currency in Transnistria puts pressure on the Lei.

What a complete and utter load of rubbish from this ‘expert’ of Transparency International Moldova, Vyacheslav Negruta. He clearly does not realise that there are dozens of larger mining farms just outside of Chisinau, which have been running for the past few years, before Transnistria even found out about bitcoin, which makes Transnistria look like a kindergarten.

Experts like this with ridiculous and nonfactual comments destabilise national currencies for profit and gain. Let’s look at the Ukrainian GRVN for example which, within days, went from 8UAH/$1 to 40UAH/$1 and that was purely politics not BITCOIN. I also wonder if he realises that, back in 2016, there was already nearly 1 million Euros a day in trading between Bitcoin and LEI via little back shops etc. in Chisinau? “Yes, I mean the evil money; cold paper cash”. If you truly want to eliminate corruption, then simply change your banking processes to digital, with digital KYC/AML, as opposed to simple photocopies of passports each time you visit the bank.

So, Mr Vyacheslav Negruta, it’s clear reading between the lines that you think you can say Bitcoin is the cause for the devaluation of Lei? For myself you’re simply projecting the future of Lei’s devaluation as there is an internal scheme to steal another Billion Dollars on the Horizon.

Unfortunately, bitcoin Mining in Transnistria does not account for anything and, if Bitcoin would account, it would have shown many years ago; therefore, you and your team alongside Elite have come far too late to the party of Bitcoin.

If the Lei goes down you will only see in all the international media that bitcoin will save the Moldovans; it has already happened with Greece, Zimbabwe, Venezuela, and many more declining economies. “Your little outburst is to generate a run on foreign exchange which will make the Lei Drop. This will expose Moldova to further scrutiny relating to corruption and will further damage investments into Moldova.”

So here’s a tip to traders MDL VS EURO and USD will drop 10 to 15% very soon, from which even 5% is going to impact foreign investment and the Industrial Growth and Import exports more than realised. NO BITCOIN WILL NOT DO THIS. 

Bravo Transnistria 1.0 Moldova, you have put little smiles and giggles on 400,000+ Transnistrian’s faces as you have become the biggest promoter for their mining facilities; “Talk about digging your own Grave.”

There are several viable solutions to the problem, but I won’t say what they are as you have such excellent experts “HA”. Or we can simply play a little guessing game.

If The State Secretary of the Ministry of Finance, Viorica Prikop, would like to achieve such activity I already proposed this to NBM 2 years ago, and also 18 months ago to MEI. But are you really serious? And, you do realise that you need to work with foreign advisors in this field in order to not damage your ICT Growth. And, most importantly of all, remove the political parties in Moldova that are always fighting with each other. And, from these two articles, I see it as being about political accusations and not really anything about Bitcoin and Transnistria.

Foreign advisors would be neutral and not biased nor conflicted with the internal politics within the country and therefore be far more flexible to create a strategy and legislation that works for Moldova to compete within the global marketplace.

All of these so called ‘experts’ advising the different ministries do not realise that over the coming decade there will be an ICT developers shortage of over 600,000 in the EU alone for AI, Blockchain and IOT. There is already a shortage of good programmers and Moldova’s strategy is Industrial and ICT.

We welcome the different ministries to participate in our Industry 4.0 masterclasses and Anti-Corruption & Human Trafficking Courses that will be hosted in Chisinau at the Regional Industry 4.0 Economic Forum.

It’s great that MEI confirmed their interest for the Industry 4.0 Economic Forum to be hosted in Chisinau November 2019.

Last note to the ‘Experts’, simply use google your friend to get more accurate information and do a little more due diligence as there are not 700 Crypto currencies.

There are already now more than 2,100 Crypto currencies that have come since the launch of Bitcoin in 2008, with the top 100 in 2019 with a market cap starting from 100 million dollars, with the highest being bitcoin with 91 billion USD. In total, the market cap for known crypto currencies is $175 billion, with an average trading volume of $39 billion per day.


I am not political, but I can read between the lines…