Russian Federation may soon issue its own official blockchain-based currency, the CryptoRuble

Frederick Owens
October 18, 2017

Last week - a day after a Russia Central Bank official said the country would ban exchange trading in cryptocurrency - Russian president Vladimir Putin made his strongest statements to date against digital currency.

I am so confident to declare that we will run CryptoRuble just for one simple reason: if we don't, our neighbors in the Eurasian Economic Community will do it in a couple of months.

Perhaps in response to these hazards, the state-issued CryptoRuble can not be mined, and will be issued and controlled and maintained only by authorities.

The news was announced by Minister of Communications Nikolay Nikiforov, following a closed-door meeting in Moscow.

The CryptoRuble might put an end to some of crypto's most challenging weeks in Russian Federation, where the government blocked cryptocurrency exchanges despite a repeated show of interest for digital cash.

Early reports indicate the CryptoRuble can't be mined, but will instead be centralized and tracked by the Russian government in the manner of fiat currency.

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The same fee will apply to any difference between the purchase price and the sale price.

In particular, the business group urged parliament to consider legal amendments concerning government regulation on the issuance and circulation of cryptocurrencies, noting a number of dangers associated with virtual capital. Although CryptoRuble will be centralized, it does appear to be blockchain-based.

Russian officials said the Cryptoruble will be taxed and the tax will be applied to any appreciation in value that occurs. The CryptoRubles can be traded for regular Rubles at any time, however in the event that the holder can't clarify where the CryptoRubles originated from, a 13% tax will be demanded. But apparently Putin feels different about a cryptocurrency that is overseen by the government.

And Mr Putin already has plans to make the currency worldwide.

While the declaration implies that Russian Federation will enter the cryptographic money world, it is not the slightest bit an assertion or authorization of Bitcoin or some other decentralized digital currency.

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