Russian publication AIF (Argumenty i Fakty), reported that a closed-door meeting between President Putin and Moscow’s political elite at the Capital Club led Putin to make the decision to issue Russia’s own cryptocurrency, dubbed the ‘cryptoruble’. Russian minister of Communications and Mass Communications, Nikolai Nikiforov, announced the details of the meeting
Nikiforov also claimed the cryptoruble will be released ‘quickly’ by the Russian state. There are few known details about the technology used for the cryptocurrency however, Nikiforov added that cryptocurrency cannot be mined.
He said in a statement:
I so confidently declare that we will launch the cryptoruble for one simple reason: If we do not, our neighbors in the Eurasian Economic Community will do it in two months.
The cryptoruble —a cryptocurrency that will become legal tender in the Russian Federation —will be taxed for . If the ownercannot declare the source of cryptorubles, a flat personal income tax of 13% will be levied when converting it into Russian rubles. Similarly, an automatic 13% tax will also be levied on the earned difference of buying and selling a crypotoruble. According to Nikiforov, these details are not yet available.
‘It will, most likely, be a closed model with a certain volume of regulated emissions’ added Nikiforov.
The Federation’s new cryptocurrency should not be read as its endorsement of, or effort to legalize decentralized cryptocurrencies like bitcoin, the minister added.
As reported by CCN in April 2016, the first public comments on Russia’s national digital were from Olga Skorobogatov, deputy chairwoman of Russia’s central bank, suggesting a ‘hybrid network’ of public and private blockchain protocols leading to a unified distributed ledger supporting a national digital currency. The Central Bank of Russia has been diligently testing a number of digital currency pilots, moving toward a national digital currency.
In early October, the first deputy governor of Russia’s central bank revealed the authority’s intent to block all online exchanges and trading platforms offering cryptocurrencies like bitcoin. At the same time, Putin spoke of “serious risks” with cryptocurrencies, while acknowledging their growth in “becoming or having already become a complete means of payment, as well as a means of investment” in countries globally.
Some statements have been translated from Russian.