Russia Is Considering An Official Cryptocurrency - The "CryptoRuble"

Investing.com - Russian President Vladimir Putin has reportedly decided that the time has come for a national cryptocurrency called the CryptoRuble. Last week, Russian authorities discussed heavily regulating Bitcoin and other cryptocurrencies, even going so far as planning the closure of all websites that sell them. According to Russian newspaper AIF, it appears as though they may have compromised on a government-issued cryptocurrency. Details regarding the CryptoRuble are scarce, but it looks like it will keep some aspects normally associated with cryptocurrencies, while getting rid of others. The CryptoRuble will reportedly use blockchain technology. But instead of being mined, it will be issued and tracked just like regular currencies. Rubles and CryptoRubles will be able to be freely exchanged. But, to deter money laundering and black market activities sometimes associated with cryptocurrencies, there will be a 13 percent tax if proof of legal origin cannot be produced. Russia’s Minister of Communications and Mass Media, Nikolay Nikiforov said that Russia’s creation of the CryptoRuble was for one simple reason: “If we do not, then in 2 months, our neighbors in the Eurasian Economic Community will do it.”It remains to be seen whether other countries will follow suit, but heavily-regulated, government-run cryptocurrencies would likely pose significant challenges for decentralized varieties.