CryptoRuble — Russia's National Cryptocurrency?

Benzinga Team Benzinga

Moscow beware! The newest financial asset class is making its entrance.

Close on heels of Russian President Vladimir Putin calling for regulating cryptocurrencies comes the news of Russia contemplating the launch of its own national cryptocurrency, called the CryptoRuble.

Citing local news sources, which quoted Russian Minister of Communications Nikolay Nikiforov, the CoinTelegraph said Putin officially announced at a closed-door meeting in Moscow that the nation will launch the CryptoRuble.

However, indications from the reports suggest that the CryptoRuble will be a whole new ball game. Unlike the currently prevalent cyrptocurrencies, the CryptoRuble will not be mined but issued and maintained only by the authorities.

The CryptoRuble could be exchanged for regular rubles at any time. The only hitch is that if the holder is unable to explain the source of the currency, he might be taxed at a 13 percent rate. Any earned difference between the price of the purchase of the token and the price of the sale will also be taxed at a 13 percent rate.

"I confidently declare that we run CryptoRuble for one simple reason: if we do not, then after two months our neighbors in the EurAsEC will," Nikiforov was quoted as saying.

The move isn't considered to be an endorsement of the cryptocurrencies, given Russia's stance on the digital currencies.

Putin has been highly critical of it, stating that Bitcoin provides opportunities to launder funds acquired through criminal activities, tax evasion, even terrorism financing, as well as the spread of fraud schemes.

The nation's central bank has voiced its opinion against the digital currency, calling it a pyramid scheme.

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Benzinga Team

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