Crypto ruble — Bitcoin’s Russian version?

Will Russia pay in a digital ruble? About the country’s national currency

Imagine Russia is a crypto paradise. Movie tickets for crypto rubles. Tramway fare for crypto rubles. Food at the grocery for crypto rubles.

Is that possible? Why not? The representatives of the State Duma of the Russian Federation have already raised an issue concerning the appearance of the crypto ruble — an analog of a conventional state currency. Let’s think together whether a digital coin would replace Russian rubles.

Russia does not need Bitcoin — make way for crypto rubles!

Taking a look at the amended law ‘On Digital Financial Assets’, you won’t find a definition of cryptocurrencies. The lawmakers decided not to mention it. The point is that the Russian authorities are not quite interested in a hidden sense of Bitcoin and reasons to invest in it.

“Concerning Bitcoins, Ethers, and all other cryptocurrencies. We decided not to define a term. We do not see the point in it since the phenomenon is of no importance to us in terms of investment,” explained Head of Financial Market Committee at the State Duma of the Russian Federation Anatoly Aksakov. As he reported, cryptocurrencies are not mentioned in the law because the government recognizes investment in them as risky.

Meanwhile, the idea of a home cryptocurrency has been debated recently. When will a crypto ruble be issued? Here is an answer of Anatoly Aksakov: as soon as laws on the crypto market regulation are adopted.

What’s also important, is a strong need for a crypto ruble. First of all, a blockchain has to establish its presence in the Russian economy.

How will a new coin work? Deposit 100 000 rubles — get 100 000 thousand crypto rubles! By the way, Anatoly Aksakov explained that a crypto ruble would not become a stable coin — a currency with a fixed price. The coin’s value would be equivalent to a fiat ruble, that is why it would become its complete analog.

Is Russia ready for a crypto ruble?

There is no clearly defined legal status of cryptocurrencies and ICO in Russia. What is more, as we have already mentioned, all the existing definitions were excluded.

What is more, the definition of mining is also absent. It was cut out in order to prevent explaining a notion of a cryptocurrency.

Concerning a crypto ruble. Anatoly Aksakov notified that a legal basis for ICO is currently at the stage of development: “At first, we create an infrastructure, then this infrastructure may require secure cryptocurrencies”.

By the way, state officials show various attitudes towards a crypto ruble. The previous year, it appeared that the President of the Russian Federation has to put forward a direct initiative of crypto ruble issuance.

This June, during Direct Line with Vladimir Putin, the President claimed the impossibility of the existence of a home cryptocurrency. Now, try to make head or tail of the future of the Russian cryptocurrency.

Would crypto ruble become a panacea for Russian problems?

What if a crypto ruble enters the market and becomes an available stable coin?

The coin may solve internal problems and boost the country’s economy. After all, a home cryptocurrency is an effective way of dollar weakening. According to a Presidential Advisor, a crypto ruble might help limit the influence of international sanctions. It would allow free foreign trade and simplify money transactions with suppliers and buyers.

What is more, a home cryptocurrency would help attract foreign investment.

Taking into consideration that blockchain is a distributed ledger that prevents data forgery, a crypto ruble may eradicate fraud.

For example, it would help realize state procurement and record state officials’ expenses on a blockchain. Everyone would have an opportunity to track the aim and amount of money spent as well as make sure that a receiver got it.

Conclusion

Currently, a crypto ruble remains a sort of a mystery for its absence on the market and unknown terms of issuance. Even if a Russian cryptocurrency is created, only large state corporations and financial establishments would likely use it.

Maybe, the currency would become mainstream, and every citizen would pay in a crypto ruble. However, it’s highly improbable. Nonetheless, such a coin would be another small step towards the blockchain advance across the country. After all, it’s up to you to decide whether to believe in a Russian cryptocurrency or not.