CryptoCurrency News

Russia plans to launch CryptoRuble; their official blockchain-based currency

CryptoRuble

Russia is reportedly planning to launch their official blockchain-based cryptocurrency called CryptoRuble. Russian President Vladimir Putin reportedly made the announcement during a closed-door meeting in Moscow. There have been months of speculations around Russia’s interest into cryptocurrency as Putin met Ethereum co-founder Vladimir Buterin in June. However, Russain Central Bank has also been pushing for a nation-wide ban on all crytpocurrency exchanges.

CryptoRuble is technically a cryptocurrency like any other however it is unlikely to share the truly decentralized nature of other coins. According to reports, CryptoRuble cannot be mined and will be issued and monitored by the government. However, being blockchain based it will definitely help in preventing online frauds.

CryptoRuble and Ruble will be easily exchangeable however there is a huge chance that it wont be traded on third party exchanges and Russia will develop their official exchange. Furthermore, upon sale of CryptoRuble, a proof of its origin will be required and those who wont be able to produce such a proof will be liable to pay 13% tax. This is to prevent usage of CryptoRuble in money laundering and currency manipulation. And any gains that might have been made due to varying price of the blockchain-based currency will also be taxable at the 13% rate.

Due to these restrictions, the CryptoRuble looks a lot of any other fiat currency. However, it seems like Russia is trying stimulate the online economy without depending heavily on foreign money markets and brokers which the Russian government cannot control.

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