Russian Federation issuing crytocurrency version of the Ruble

Russian Federation issuing crytocurrency version of the Ruble

Regular paper Rubles will be exchangeable for CryptoRubles at any time.

Reports this mid year suggested the country was looking into creating its own digital currency, though the administration has also taken a hard line on other coins, calling them illegitimate replacements for the official currency.

CryptoRuble appears to be the name of this state-issued digital currency; but it seems to be more of an attempt at utilizing the blockchain technology, rather than a cryptocurrency with privacy in mind. 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.

Minister Nikiforov further explained that the cryptoruble should not be seen as a de facto legalization of cryptocurrencies that are governed purely by protocol, like Ether or bitcoin.

Details are scarce, but according to the reports, the CryptoRuble can not be mined, but will be issued and tracked by the government like ordinary currency.

Russian Federation will try to profit and tax speculation and money laundering.

The same fee will apply to any difference between the purchase price and the sale price. He said, "If we do not, then after two months our neighbors in the EurAsEC [Eurasian Economic Community] will", according to CryptoCoinsNews. But apparently Putin feels different about a cryptocurrency that is overseen by the government.

Last week, the finance minister of Russia, Anton Siluanov said that Russia planned to start trading and mining cryptocurrency with the aim to protect people and investors by generating tax revenues. Russia's interest, however, is likely in boosting its online economy without relying on third-party brokers and foreign currency markets.

The organization also said cryptocurrencies are often used as a payment tool on marketplaces on the dark net, for purchasing weapons and drugs, and can be easily used as bribes and for funding outlawed organizations, including terrorist groups.