For many months now, Russia has appeared to continually switch sides with regards to legalising the use of cryptocurrencies. However, it appears they may finally have made up their minds, as the government has announced plans to develop their own currency: the CryptoRuble.
Keep up with the time
For a while now, Russia has come under criticism that its lack of desire to properly regulate the crypto markets won’t be in the best interests of the country in the long run. With financial institutions starting to change, and the benefits of the Blockchain becoming more widely known, many large nations are choosing to adopt this new form of transaction.
On top of this, failing to regulate Digital Ledger Technology doesn’t necessarily stop people from using cryptocurrencies but instead encourages more illegal activity, both from businesses and individuals.
What we know
Nikolai Nikiforov, Minister for Communications, announced that Russia is aiming to develop this fiat-backed currency as quickly as possible. From his statement, what we can also learn is that Russia seems unwilling to fall behind in the race against other countries adopting cryptocurrencies.
He stated, “I am so confident to declare that we will run CryptoRuble just for one simple reason: if we don’t, our neighbours in the Eurasian Economic Community will do it in a couple of months.” It appears they are unwilling to let other neighbouring nations beat them to the race, and face their own citizens turning to those currencies instead.
This move, to many, would make sense as it allows them to follow advancements in technology, and also have an easier time implementing rules and regulations governing the use of this currency. Nikiforov announced that, when converting CryptoRubles into Russian Rubles, a flat rate of 13% will be levied on the amount if you are unable to declare where the income came from.
If you are hoping this news will mark a change towards the allowance of all cryptocurrencies in Russia, then you may be disappointed. The Minister made it clear that this is in no way a move towards the legalization of other decentralized currencies, such as Bitcoin or Ethereum.