Russian Federation to issue state-backed CryptoRuble digital currency

Yet another Russian official has claimed Russia will launch its own digital currency.

Nikiforov believes that the new currency will be issued in a short period of time.

The so-called "CryptoRuble", as press reports have named it, has no specific timeline to its roll out.

The idea is to stimulate the online economy in a way that doesn't rely on foreign money markets or third party transaction brokers, and allows the government to closely regulate and track it. Nikiforov also reportedly said that if Russian Federation didn't do it, European authorities might beat them to the punch.

"In the current geopolitical situation, the issuance and circulation of foreign cryptocurrencies in Russian Federation risks irreversible negative consequences for both Russia's economic development and political stability", AVANTI wrote. Some support the existing structure, and the government has backed several initiatives, including a mining operation.

Russian Federation has been talking openly about the prospect of creating its own cryptocurrency, and now it seems like the country will turn its words into action.

The official stated that the cryptocurrency issued by the state can not be mined and will be issued, controlled and maintained only by the authorities. There is also no word on whether government-run exchanges will be created for the new coinage. However, if the holder is not able to explain the origin of the CryptoRubles, a 13-per cent tax will be levied.

Nokiforov was quoted in local news reports as confirming the existance of the coin, or at least the plans for it.

"I say with confidence that we are running CryptoRuble for a simple reason: if we do not do this, after two months our EurAsEC neighbors will do it", revealed Nikiforov. Rather Putin had recently called for a complete ban on all cryptocurrencies within Russian Federation. It is interesting to observe Russia's ever-changing attitude towards cryptocurrency, as not long ago, numerous negative statements against bitcoin and altcoins were made by highly-ranking officials of the country. "In a number of countries, cryptocurrencies are becoming or have already become a full-fledged means of payment, as well as a means of investment". The national cryptocurrency will also tightly controlled and regulated and will be used for tax purposes.

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

Related news: