Moscow wants to create its own virtual currency named Moscowcoin

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Just some days ago, Russia announced the creation of its own cryptocurrency named CryptoRuble. In this cryptocurrency craziness, Moscow seems ready to plan a strategy to create the Moscowcoin, the cryptocurrency of the city. Indeed, Kazakhstan also wants to issue its own virtual currency not to lag behind other countries.

Is Moscowcoin real?

It may sound unrealistic and not profitable. Russia announced the creation of the CryptoRuble not to let other countries take the lead in Blockchain technology. But unexpectedly, an internal rival appeared, Moscow. The CryptoRuble could not be in the future the only national cryptocurrency in Russia. It could get along with Moscow’s City cryptocurrency: Moscowcoin.

Vladimir Efimov, the head of Moscow’s Department of Development and Economy, said that “Moscow authorities are discussing about the introduction of a cryptocurrency. This coin could be used by residents in the city web portal: active citizen”. He didn’t comment about the possibility of having two cryptocurrencies at the same time, even when it does not seem to be worthwhile.

The next step to know whether this currency will be developed or not is the creation of a law. Russia is taking different steps to control decentralized cryptocurrencies, to regulate ICOs and to create the CryptoRuble.

Moscowcoin and CryptoRuble need time to be developed

After the announcement of the CryptoRuble, everything needs to be prepared. The technology is not yet developed in order to establish the virtual currency. Regulations should be drafted and presented to official entities in order to develop the necessary instruments for the currency to prevail.

In addition to those questions, consumers are used to decentralized cryptocurrencies. The world has not seen any national cryptocurrency yet, and doubts arise about how they would work along other currencies. There is not any explanation about how the CryptoRuble would work with Moscowcoin or which one would be issued first.

In the next weeks, and before 2018, information will start to appear and clear up the way to know which of the currencies will be issued, how and when. There were no comments related to the taxation that would be applied to Moscowcoin. The CryptoRuble would be taxed 13% if the owner would not be able to explain how he obtained the funds to buy the virtual currency.

Furthermore, Russia was analysing the possibility of regulating cryptocurrency fundraising in the territory. Initial Coin Offerings could be banned soon in order to clarify the rules for the new cryptocurrencies to spread on Russian territory.