Russia to launch state issued cryptocurrency 'CryptoRuble'

Russian President Vladimir Putin has stated that the country will be issuing its own cryptocurrency, the CryptoRubble, which in a way is very similar to the likes of Bitcoin and Ethereum. The news was first reported by CoinTelegraph, citing Russian Minister Nikolai Nikiforov.

While details of the technology used for the cryptocurrency remain scarce, Nikolai Nikiforov, Minister of Communications and Mass Communications, added the cryptocurrency cannot be mined. The minister said in a statement, "I so confidently declare that we will launch the CryptoRuble for one simple reason: if we do not, our neighbors in the Eurasian Economic Community will do it in 2 months."

Owners will be able to exchange their currency for Russian Rubles at any time, and a 13 percent tax will be levied if the holder can't explain where the CryptoRuble came from. A 13 percent tax will also be applied on the earned differences between the price of the purchase of the token and the price of the sale. All signs point to this being a blockchain-based currency.

The idea behind CryptoRuble is to stimulate the online economy in a way that it does not rely on any foreign money markets or transaction brokers. The cryptocurrency will also allow the government to track and closely regulate the money. One could readily exchange digital coins for conventional money, although officials would reportedly require a proof of origin if you wanted to avoid a 13 percent tax meant to discourage money laundering and other dirty tricks.

Nikiforov said that the creation of its own cryptocurrency should not be read as an endorsement, nor any effort to legalize decentralized cryptocurrencies like bitcoin. In addition to launching the cryptocurrency, the focus will also be on educating the population about cryptocurrencies.