Putin Issues Order for the Creation of the Cryptoruble

Putin

Reports confirmed that Russian President Vladimir Putin has issued an order for the Cryptoruble.

Popular Russian news agency, the AIF reported last week that the Russian Minister of Communications and Mass Media, Nikolay Nikiforov, recently confirmed during a closed meeting with several members of the Moscow Capital Club, that President Putin has officially issued an order for the country to create its own cryptoruble.

According to reports, the decision was made after Putin’s meeting with Russia’s financial regulators where he expressly instructed the Russian central bank to refrain from creating unnecessary barriers where cryptocurrency is concerned.

In regards to the decision for the government to issue a cryptoruble, Nikiforov stated that he could confidently declare that the Russian government will soon launch its own national cryptocurrency. Nikiforov stated that the simple reasoning behind this decision is that of Russia does not do it, their neighbors within the Eurasian Economic Community will beat them to it.

According to the publication, Nikiforov stated that the cryptoruble will be issued quickly. He added that the cryptoruble will allow for a more streamlined payment method when it comes to personal income tax. This implies that the cryptoruble will enjoy legal tender status in Russian.

Currently, Russia has a flat 13% income tax rate. However, in addition to the cryptoruble, Putin has also called for a tax reform that would be more conducive to economic growth. According to The Moscow Times, Putin has ordered for the tax system to be revised during 2018, and for the reform to be implemented in 2019.

According to AIF, Nikiforov stated that in terms of buying and selling a cryptoruble, a 13% fee will be earned from the difference. If an owner fails to explain the appearance of his cryptorubles, he will be taxed for 13% of the total.

In addition, the cryptoruble will not be able to be mined, according to Nikiforov. The Minister stated that the cryptoruble is likely to be a closed model with a volume consisting of regulated emissions.

Several prominent Russian financial institutions and individuals have been advocating for the country to create its own national cryptocurrency. In early October, the Russian Central Bank voiced their enthusiasm for creating a cryptocurrency. In addition, the Russian Central Bank’s Deputy Governor, Olga Skorobogatova, stated at the annual Finopolis forum of innovative financial technologies that the bank was attracted to the many benefits that a state-backed cryptocurrency could bring. Other prominent advocates for the cryptoruble included the First Deputy Prime Minister, Igor Shuvalov, who voiced his advocacy in August this year.

In regards to the suggested regulation of the cryptocurrency, the Minister stated that the creation of the cryptoruble does not mean that bitcoin would be legalized. He also stated that the Russian cryptocurrency would utilize Russian cryptography.

According to Russian Finance Minister, Anton Siluanov, the Russian Ministry of Finance is currently collaborating with the Russian Central Bank in order to draft a bill which is expected to be submitted before the end of the year.