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.
Benzinga does not provide investment advice. All rights reserved.
Recommended Content
Editors’ Picks
EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.