Russia Launching National Cryptocurrency

Virtual currencies are growing in legitimacy every day. It’s even reached the point where nations are looking into adopting cryptocoins as sanctioned tender. First, China floated the idea of its own state cryptocurrency. Russia, though, looks set to beat the Asian country to the punch. At a closed-door meeting in Moscow, Russian President Vladimir Putin sanctioned the CryptoRouble, CoinTelegraph reports.

Russia – Thumbs Up to Cryptocoins

Following the state meeting in Moscow, Russia’s Minister of Communications Nikolay Nikiforov said:

“I confidently declare that we run CryptoRuble for one simple reason: if we do not, then after 2 months our neighbors in the EurAsEC will.”

The announcement follows Putin outlining, just days ago, his intention to ban all cryptocurrencies, including the synonymous Bitcoin. However, a number of Russian ministers are pro-crypto. Putin cites money laundering prevention as his motivation:

“Opportunities to launder funds acquired through criminal activites, tax evasion, even terrorism financing, as well as the spread of fraud schemes.”

He also accused digital coins of being a pyramid scheme:

“We have seen how Bitcoin has transformed a payment unit into an asset, which is bought in order to obtain a high yield in a short period of time. This is the definition of a pyramid.”

It’s worth noting that China is also seeking to ban crpyotcurrencies and replace them with a state-run alternative. The invention of CryptoRubles, therefore, appears part compromise and part control measure. A “pyramid scheme” is fine so long as it’s state-run, presumably.

Russia’s National Cryptocurrency – The CryptoRouble Explained

According to CoinTelegraph, mining CryptoRoubles is impossible. Instead, state authorities will issue and control the currency. Russian citizens can exchange CryptoRubles for physical Rubles. However, a 13% tax is levied if the owner cannot prove how they obtained the cryptocoins.