Last week, following a period of mixed signals from the authorities about cryptocurrencies, the Russian communications minister Nikolay Nikiforov said that President Vladimir Putin has officially endorsed a Russian cryptocurrency, the ‘CryptoRuble.’
“We’re launching CryptoRubles for one simple reason: if we do not, then after two months it will be done by our neighbors in EurAsEC,” said Nikiforov, referring to the Eurasian Economic Community, an association of former Soviet republics around Russia.
This official blockchain-based currency cannot be mined. In contrast with ‘traditional’ cryptocurrencies like bitcoin, which are decentralized, the CryptoRuble will be issued and fully controlled by the state.
CryptoRubles will be exchanged for regular rubles at any time, but “when buying and selling a CryptoRuble, the rate will be 13% from the earned difference,” said the minister.
The 13% tax will also apply to CryptoRuble-to-ruble transactions “if the owner cannot explain the reason for the appearance of his CryptoRubles,” Nikiforov announced.
The national digital currency will be moved to international markets, according to the Russia’s Deputy Minister of Economic Development Oleg Fomichev, stressing that there is no point in the currency circulating only inside the country.
The idea of a CryptoRuble was aired this past summer by Igor Shuvalov, Russia’s First Deputy Prime Minister, while Russia’s central bank was already working on a national digital currency.
“Another form of the ruble”
Amid mixed reactions, some experts are hoping for the best. Alexander Shevtsov, founder of Jury.Online, believes that a national cryptocurrency can simplify e-money turnover.
“This will make it much easier to accept payments without the need to deal with traditional banking procedures,” Russia Beyond The Headlines quoted Shevtsov as saying.
The CryptoRuble can make transactions more transparent, easy and cost-efficient for both individuals and organizations, he believes.
Eldiyar Muratov, president of the Castle Family Office in Singapore, believes the CryptoRuble will most likely be used by state companies rather than individuals.
The CryptoRuble will be anchored to the real ruble by a ratio of 1 to 1. “It will not be a cryptocurrency in the usual sense, but rather another form of the ruble,” Muratov said in an exchange with Russia Beyond The Headlines.
Other experts, however, believe that the rate of the CryptoRuble could go higher. Oleg Bogdanov, chief analyst at Teletrade, said a limited emission of the CryptoRuble might create artificial demand. “For example, if Russia follows the example of Bitcoin and issues only 22 million CryptoRubles then the cryptocurrency’s rate will be higher,” Bogdanov told Russia Beyond The Headlines.
