Russia Planning on Issuing Its Own Cryptocurrency. Russian president Vladimir Putin called for the issuing of a new digital currency entitled the CryptoRuble. This would be a blockchain-based currency that would be issued and controlled by the Russian state government.
This comes amid the Russian government blocking cryptocurrency exchanges in recent time. There had been rumors that the government would be interested in investing in Ethereum though.
Although Putin has expressed an interest in Russia looking into such currencies in the future, the blockade against such exchanges has proven to be a concern within the country. The move comes amid cryptocurrencies becoming more viable investment options in the global economy.
Communications minister Nikolay Nikiforov stated that the Russian government needed to issue its own digital cash currency first. There were concerns that other countries around the Eurasia community would beat them to it.
The CryptoRuble is not intended to equate to being an invitation for other cryptocurrencies to become legal within the country. This in spite of the desire for the Russian government to work with some currencies in the future.
How the Currency Would Work
Most cryptocurrencies work as being open to the public. They can be mined and traded by anyone. The CryptoRuble is very different as the Russian government has full control over this currency. The government is fully responsible for mining and issuing the currency.
People who do acquire this currency have the right to exchange it for real rubles. A 13 percent tax would be applied onto transactions where people buy or sell the coin. An additional 13 percent tax would be used on those who are unable to declare the sources of their coins.
The total number of coins that would be issued is uncertain at the moment. The Russian government has full control over how many of these coins would be given out.
Russian Specifics
Also, Russian cryptography would be utilized for producing the coins. This would entail distinct encoding systems that are identical to what is used in other currencies but may work more with the Russian alphabet in mind.
Such a move might potentially impact the cryptocurrency market at large. By using its own special cryptography program, the CryptoRuble could potentially develop into being a stronger investment option as it changes the market. By using a special blockchain arrangement, there is always the potential that the currency might grow and thrive. It may also influence the development of other similar currencies that use alternative means for managing their blockchain functions.
Additional technical information on the CryptoRuble has yet to be released. It is not certain as to what the government will do for setting the price for the currency, let alone if its value can change in the same manner as any other similar currency could.
The development of this currency marks a significant move for the Russian government in terms of understanding how cryptocurrency may be used. Whether other countries would do like what Russia is doing and issue their own cryptocurrency is unclear at this moment. This does make for a significant development in terms of what may develop in the market.
