Russia Unveils Plans To Introduce Blockchain-Based CryptoRuble Currency

Russia may soon roll out its own state-controlled cryptocurrency called CryptoRuble. Unlike Bitcoin, Ethereum, LiteCoin, and other types of cryptocurrency that are all the rage these days, Russia's digital coins cannot be mined. CryptoRubles will be issued and tracked by the government like regular currency, and users will be able to freely exchange Rubles and CrytpoRubles.

"I confidently declare that we run CryptoRuble for one simple reason: if we do not, then after two months our neighbors in the EurAsEC will," said Mikolay Nikiforov, Russia's Minister of Communications.


What makes this move somewhat surprising is that Russian President Vladimir Putin has spoken out against cryptocurrencies, even recently calling for a complete ban on them within Russia. But apparently Putin feels different about a cryptocurrency that is overseen by the government. As part of that government oversight, anyone in possession of a CryptoRuble would have to be able to prove where it came from, otherwise the currency would be assessed a 13 percent tax The same tax would also be applied to any earned difference between the price of the purchase of the token an the price of the sale.

There have been previous reports that Russia was looking into creating its own cryptocurrency, though with Putin and his administration viewing cryptocurrencies in general as illegitimate replacements for Russia's official currency, there has been skepticism that it would go through with it.

How this all works out remains to be seen. While details are light, it appears that CryptoRubles will be blockchain-based. That said, with the government oversight and proof-of-ownership in play, privacy gets pushed to the wayside here. Generally speaking, anonymity is one of the main draws of cryptocurrencies. Russia's interest, however, is likely in boosting its online economy without relying on third-party brokers and foreign currency markets.

It is not clear when exactly Russia might start using CrytoRubles.