Cryptoruble Russia’s national cryptocurrency- Vladimir Putin

Recently, Vladimir Putin, Russian president ordered the issue of the ‘cryptoruble’ a national cryptocurrency. Therefore, the Russian Minister of communications and Mass Media has declared some details of this new currency.

Putin’s Executive Order

Nikolay Nikiforov, Russia’s Ministry of Communication and Mass Media on Saturday closed meeting with members of the Moscow Capital Club that Putin has ordered the issues of the country’s own the ‘cryptoruble’ cryptocurrency.

Nikiforov said,

“I so confidently declare that we will [soon] launch a cryptocurrency for one simple reason: If we do not, then in 2 months, our neighbors in the Eurasian Economic Community will do it”.

Preliminary Details of Cryptoruble

It is the Nikiforov belief that ‘the cryptoruble will be issued quickly’. The official also says that the efficacy of the new cryptocurrency will “streamline the payment of personal income tax”, which would make the new currency legal tender in Russia.

Presently, Russia has a flat 13% income tax rate. However, Putin has called for an improvement of the tax system in order to boost economic growth. He order the tax code to be adjust in 2018 and be implement in 2019.

Nikiforov explains,

“When buying and selling a cryptoruble, the amount will be 13% from the earned difference…If the owner cannot explain the reason for the appearance of his cryptorubles, when converting them into Russian rubles, the tax for him will be 13% of the total”.

Moreover, the minister noted, “most likely, it will be a closed model with a certain volume of regulated emissions”.

Also Read: Deputy Finance Minister says, Russia to ban bitcoin payments

Russia’ Central Bank encouraged for a national cryptocurrency earlier this month. Olga Skorobogatova, deputy governor says at the Finopolis forum of innovative financial technologies. Therefore, the bank sees many benefits in a state-run cryptocurrency. Also among the supporters for a national cryptocurrency is First Deputy Prime Minister Igor Shuvalov who says in August that a cryptoruble should exist.

Cryptoruble Is Not Legalization of Cryptocurrencies

Regarding the regulation of cryptocurrencies, the minister explained that,

“The creation of the cryptoruble would not equal the legalization of bitcoin and other cryptocurrencies. Russia’s cryptocurrency should use Russian cryptography”.

Later on, last week after the meeting with Putin, the regulators decided that Russian will regulate cryptocurrencies. According to Finance Minister Anton Siluanov, the finance ministry is working with the central bank to draft which is expect by the end of the year.

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