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Russia to issue its own 'CryptoRuble': report

17 October 2017

Russia will issue its own 'CryptoRuble', Russian president Vladimir Putin announced this at a closed door meeting in Moscow, according to local news sources, The official announcement came through minister of communications Nikolay Nikiforov.

The official stated that the cryptocurrency issued by the state cannot be mined and will be issued, controlled and maintained only by the authorities. The CryptoRubles can be freely exchanged for regular Rubles. However, if the holder is not able to explain the origin of the CryptoRubles, a 13-per cent tax will be levied. The same tax would be applicable to any earned difference between the price of the purchase of the token and the price of the sale.

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.''

According to commentators, while the announcement meant Russia would enter the cryptocurrency world, it could not in any way be seen as an affirmation or legalisation of Bitcoin or any other decentralised cryptocurrency. Rather Putin had recently called for a complete ban on all cryptocurrencies within Russia.

They add the statement from Putin, seemed to contradict earlier comments from other ministers who seemed pro-crypto, but only with regulations.

Meanwhile, reported citing AIF news that ''the cryptoruble will be issued quickly,'' the publication noted. The official added that the efficiency of the new cryptocurrency will ''streamline the payment of personal income tax,'' which would make the new currency legal tender in Russia.

Russia currently levies a flat 13 per cent income tax, but Putin has called for a reform of the tax system in order to boost economic growth. He has ordered adjustment of the tax code in 2018 and its implementation in 2019, according to The Moscow Times.

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