Cryptoruble
Altcoin Investing

Cryptoruble Could Soon Become Legal Tender in Russia

Several months have passed since Russia announced the intention to create their own cryptocurrency named Cryptoruble. But another step has been achieved in this long way from words until facts. A bill has been submitted to the Russian parliament in order to make the Cryptoruble legal tender in the country.

Nearer to the Cryptoruble

A draft law that introduces Russia’s national cryptocurrency has been submitted to the parliament according to local news. The draft was submitted by a Communist Party MP named Rizvan Kurbanov. At the same time that this draft was submitted, another aiming to regulate the cryptocurrency mining activities and crypto financial assets has been presented.

At LetsEarnBitcoin we have covered how Russia was getting prepared to receive Bitcoin miners. The country has excess of energy and a good climate to reduce mining refrigeration costs.

Cryptoruble
Cryptoruble

‘The amendments proposed by the draft law… codify the digital financial asset as a legal means of payment on the territory of Russia,’ reads the note presented. ‘Adoption of the submitted draft federal law will not entail additional costs from the federal budget and does not require changes in other financial obligations of the state,’ wrote Kurbanov.

The bill proposes to amend Article 140 of the Civil Code of the Russian Federation. In this way, the Cryptoruble would be added to the list of legal means of payment in Russia.

“The cryptoruble is a digital financial asset (cryptocurrency) – an analog of the ruble, which has circulation in the territory of the Russian Federation. (…) It is protected by cryptographic methods and used by participants in the distributed registry of digital transactions.”

According to several reports, Putin itself has pressed for the creation of the Cryptoruble. Immediately after, Russia’s Minister of Communications and Mass Media, Nikolay Nikiforov, declared the creation of the Cryptoruble.

What Else Do We Know About This National Cryptocurrency?

Aside from the information that we already have, it is important to mark that the Cryptoruble will be strictly regulated. Mr Nikiforov has also explained that the owner of Cryptorubles will have to explain from where they have them. If they do not have a proper explanation of where they have these funds, then they will be subject to 13% tax in order to convert them into Russian rubles. What it is not clear is how this will prevent criminals to launder money.

The technology needed to launch the Cryptoruble is being tested in several cities like Moscow Vladivostok. These cities have different blockchain-related activities. The Cryptoruble will need an important infrastructure to be developed all over Russia so as to have allow the population to use this cryptocurrency.

Besides that, the Cryptoruble will not be a decentralized cryptocurrency as most of the ones that are there in the market. Ethereum, Bitcoin, Litecoin are decentralized virtual currencies that no central authority controls. But the Cryptoruble will not be mined and it will be created according to the central authority.

Another reason why Russia tries to launch this cryptocurrency is because other countries like Kazakhstan or Belarus are taking different measures to facilitate the access to cryptocurrencies. Kazakhstan, more specifically, will launch its own cryptocurrency. At the same time, its taking hard measures against other cryptos. Belarus is having a positive stance regarding cryptocurrencies. Indeed, it will not tax blockchain enterprises in the country and is pushing its population to use cryptocurrencies.

The Cryptoruble will work in the international market as well, according to Russia’s Deputy minister of Economic Development Oleg Fomichev. It will allow for transnational payments for goods and services with different countries like the ones mentioned before (Belarus and Kazakhstan).