Oct 24, 2017 by Andrei Calina

According to local Russian press, Vladimir Putin has demanded during a closed-door meeting in Moscow for his country to have its own blockchain-based digital currency, called “CryptoRuble.” This decision comes after Russia banned Bitcoin and other decentralized cryptocurrencies

Despite recent demand for digital cash, the Russian government took the decision to eliminate cryptocurrency exchanges, creating a mysterious fog surrounding the topic. “I so confidently declare that we will launch a [cryptocurrency] for one simple reason: if we do not, then in 2 months our neighbors in the Eurasian Economic Community will do it,” said Russian communications minister Nikolay Nikiforov, according to Futurism.

No chance for Bitcoin to hit Russia in the near future!

And the cat is out of the bag! Russia seems to have issued the cryptocurrency ban to push forward its own currency “CryptoRuble,” so it’s unlikely for Bitcoin and other decentralized cryptocurrencies to soon return to the eastern country, a fact confirmed by Nikiforov himself.

So far, we know that CryptoRuble won’t be your typical crypto coin, as it won’t be open for miners and it will be pretty much controlled and maintained by the government. It could be exchanged for Rubles anytime, having a 13 percent tax perceived on users not capable of declaring the source of their crypto coins. A similar 13 percent tax would be levied on every transaction involving the buying and selling of CryptoRuble.

In a nutshell, you can call it a local cryptocurrency

The Russian communications minister added that further details are still to be discussed, but one thing is for sure –  a Russian cryptocurrency should use Russian cryptography.

It means that CryptoRuble won’t use the same decentralized model that took blockchain and crypto coins at a whole new level, but will have the same type of security that blockchain-based coins ensures. The project is still far away from finalisation, yet we can all agree that it’s a fine first step for Russian cryptocurrency adoption.