Russia is ready to issue its own Cryptocurrency: the CryptoRuble

cryptoruble

Nikolay Nikiforov, Russian Minister of Communication and Mass Media, informed to the local newspaper AIF that Putin has ordered the issue of the country’s own cryptocurrency. The CryptoRuble.

The mystery is over. After weeks of comments form members of various Russian agencies, Russia will issue its own cryptocurrency known as the CryptoRuble. It will start as soon as the technology will be ready.

The CryptoRuble will be considered a currency of legal tender in Russia. Its supply will follow a closed model with regulated emissions. In addition to it, the virtual currency will not be able to be mined and will be subject to taxation.

“If the owner (of CryptoRubles) can not explain the reason of the appearance of the CryptoRubles, when converting them into Russian Rubles, there will be a 13% tax”, commented Nikiforov and cited by Bitcoin.com.

The Russian virtual currency will not be decentralized, as the other cryptocurrencies on the market. This feature will allow the government to control and reduce the possibilities of money laundering or criminal activities.

Governor Olga Skorobogatova, the Central Bank of Russia’s Deputy, commented in June that Russia was testing a national virtual currency and working with blockchain technology. “The creation of a national cryptocurrency stimulates the growth of non-cash payments and electronic payments, including, possibly, cross-border payment”, commented at a press conference for the Finopolis Forum.

Issuing the CryptoRuble does not mean that cryptocurrencies are legal

Russian President, Vladimir Putin, commented that Russia will regulate cryptocurrencies in its territory. The Central Bank of Russia had also expressed its position about the cryptocurrencies. The Central Bank said that they will ban all cryptocurrency exchanges as China and South Korea did some weeks ago.  

Nikolay Nikiforov stated that if Russia will not issue its own cryptocurrency, then another country from the Eurasian Economic Commision will do it first. This comment is related to Kazakhstan that plans to introduce its own cryptocurrency baked by gold. Other countries tried to issue their own cryptocurrencies in Europe but the ECB stopped them.

Russia was analyzing the possibility of regulating cryptocurrencies and ICOs. Finance Minister Anton Siluanov, quoted by RT, announced that “the state should regulate the process of issuing cryptocurrencies, the process of mining as well as the process of circulation. The state should head this situation and regulate it legally”.

It is different from other cryptocurrencies

As the CryptoRuble will be controlled by the Russian government, it will lack of one of the basic things that cryptocurrencies have: decentralization. The CryptoRuble will be used in the same way as the Russian Ruble, but in a virtual way. This will boost economic activity and e-commerce.

Jamie Dimon commented that Bitcoin and cryptocurrencies will be “crushed” by Governments. He has also made a distinction between Bitcoin and the technology involved, blockchain. “The technology (blockchain) will be used to transport money. But it will not be Bitcoin, but US Dollars that will be transported”. JPMorgan Chase is investing in developing blockchain technology to reduce transactional costs.

At the moment, the currency that will use Blockchain technology will be the Russian Ruble.


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