Russia is set to launch a state-issued cryptocurrency – the CryptoRuble, Russian Minister of Communications Nikolay Nikiforov has revealed, Cryptovest.com reported on Friday.
The decision was made at a closed-doors meeting convened by President Vladimir Putin.
The digital Ruble will not be “mineable” like traditional cryptocurrencies. Instead, it will be exchangeable with fiat Ruble at any time.
According to Nikolay Nikiforov, the reason behind launching CryptoRuble is simple.
“I confidently declare that we run CryptoRuble for one simple reason: if we do not, then after tow months our neighbours in the EurAsEC will,” the Minister of Communications said.
There is going to be a 13% tax on any exchanges when CryptoRuble holders can’t account for their origin, or when gains are realized while trading between the crypto and fiat versions of the currency.
The Minister explained that the creation of a CryptoRuble would not equal the legalisation of Bitcoin (EXANTE: Bitcoin) and other cryptocurrencies. Russia's cryptocurrency should use Russian cryptography, the Minister said.