Reports suggest that Russia may be getting more serious about issuing its own national cryptocurrency, the CryptoRuble. CoinTelegraph today cited unidentified ‘local news sources’ which apparently reported that President Vladimir Putin declared the government’s intent to issue the CryptoRuble during a meeting in Moscow.
That news was reportedly confirmed by Nikolay Nikiforov, the Russian Minister of Communications, who indicated that the government has one main motivation driving its decision-making in this area:
“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.”
From all available accounts, however, the CryptoRuble will share little in common with popular decentralized digital currencies like Bitcoin. Rather than being decentralized and mined, the CryptoRuble will be issued by the government, and strictly monitored and controlled.
CryptoRuble users will be able to exchange the electronic tokens for traditional rubles, but even that process will be tightly controlled.
According to the reports, users who want to exchange CryptoRubles for ordinary rubles will be assessed a 13 percent tax unless they can provide an acceptable accounting of how they obtained the tokens. Nikiforov reportedly said that the 13 percent tax will also be assessed on any value increase users enjoy as a result of that exchange. If, for example, the price of the CryptoRuble rises above the ruble, the difference in value will be taxed.