With the whole world joining in on the cryptocurrency bandwagon, President Vladimir Putin, according to a local news source, recently stated the issue of Russia’s own cryptocurrency by the name of CryptoRuble. The news was broken by the Russian politician Nikolay Nikiforov and the announcement was made at a closed-door meeting in Moscow.
CryptoRuble will be the only cryptocurrency the Russians will be legally allowed to use. According to the statements issued by the officials, this cryptocurrency cannot be mined and will, in fact, be issued, controlled, and maintained only by the state authorities.
While the CryptoRubles can be traded for regular Rubles anytime, the holder of the CrytpoRubles must have a valid explanation regarding the source of the currency failing which he/she will have to pay a 13% tax. The same amount of tax will be applied to any earned difference between the price of the purchase and sale of the token respectively.
“I confidently declare that we run CryptoRuble for one simple reason: if we do not, then after 2 months our neighbours in the Eurasian Economic Community (EurAsEC) will,” said Nikiforov.
With the launch of CryptoRuble, Russia will enter the world of cryptocurrency. However, the launch is not to be considered as a legalization of Bitcoin, or any other cryptocurrency for that matter, in the country. Putin has made it clear that cryptocurrency has its benefits but also its threats, and has called for more regulations.
It is being reported that the decision to launch the new currency comes as a means of being able to levy taxes on cryptocurrency. In multiple meetings with key players in the cryptocurrency world, like Vitalik Buterin, the Russian government has made considerable efforts into understanding cryptocurrencies and how governments can co-exist in a decentralized world.
After Dubai and Estonia, Russia has made cryptocurrency adoption official and we can only expect more countries to follow suit. However, its adoption is something we will have to wait and watch, as other cryptocurrencies like Bitcoin and Ethereum will always be more valuable and non-taxable.
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