Russia Is Ready to Introduce the Cryptoruble as Legal Tender

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At CoinStaker we have written several times how Russia was planning to issue a national cryptocurrency. They have decided to call it ‘the Cryptoruble’, due to the fact that it will be the digital version of the Russian ruble. A draft law has been submitted to the Russian parliament to introduce the national cryptocurrency as a means of payment.

The draft was presented by a member of the Communist Party named Rizvan Kurbanov. The intention is to propose an amendment to the Russian Civil Code in order to Consider the CryptoRuble as legal means of payment.

The Next Steps of the Cryptoruble

There have been different steps in order to have the Cryptoruble in such an advanced situation. First, the Russian president, Vladimir Putin, has asked the creation of this cryptocurrency back in October. Later, the infrastructure was being developed, as the two cryptocurrency agencies opened in Vladivostok.

Nikolay Nikiforov was the Minister in charge of presenting this cryptocurrency to the world. Nikiforov is the Russian Minister of Communication and Mass Media. The newspaper AIF has reported that the president Putin has personally asked for the creation of this cryptocurrency.

cryptoruble

The Cryptoruble will be subject to taxation in case the owner can’t explain where the funds come from. This is one of the measures that the regulatory authorities are thinking in order to avoid money laundering activities.

“If the owner of Cryptorubles can’t explain the reason of the appearance of the Cryptorubles, when converting them into Russian rubles, there will be a 13% tax,” commented Nikiforov.

The document presented to the parliament reads as follows:

“The amendments proposed by the draft law… codify the digital financial asset as a leagal means of payment on the territory of Russia.”

International Cryptocurrency

The intention of the government is to not keep losing control of the economy by competing against other cryptocurrencies. It is clear that the nation state is losing the ability to control the flow of money. The Cryptoruble will not be as most of the cryptocurrencies out there. It lacks decentralization, something that Bitcoin or Litecoin have since their conception. But the Cryptoruble will be controlled by a central authority that will decide how many Cryptorubles will be issued and at which price.

The cryptocurrency has been thought to be an international cryptocurrency as well. Russia has a fluid commercial relation with Kazakhstan, Belarus and other countries. That would help to make transactions faster than what they are now.

Furthermore, Russia has been pressing for an international cryptocurrency with the BRICS. The Cryptoruble could be an experiment to try this new ‘worldwide’ cryptocurrency. If the Cryptoruble works in a regional scale, it could be used also in the international stage. Brazil, Russia, India, China and South Africa are part of the BRIC countries. These emerging economies have an important potential development for the future and may be the next big players in the international stage.

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