Russian President Green-lights Launching of CryptoRuble

CryptoRuble

According to Communications Minister Nikolay Nikiforov, Russia’s President Vladimir Putin has green-lighted the issuance of what many believe to be the currency of the future: the crypto-ruble, a national crypto-currency.

As soon as the new digital currency called CryptoRuble will be issued, other cryptocurrency mining will become illegal and the entire cryptocurrency market will become regulated by the Russian government.  Communications Minister Nikolay Nikiforov has said after a closed door meeting with Vladimir Putin:

“I am so confident to declare that we will run CryptoRuble just for one simple reason: if we don’t, our neighbors in the Eurasian Economic Community will do it in a couple of months,”

All financial transactions/operations using the new digital currency are to be taxed, and the same tax will be applied to any CryptoRuble appreciation in value:

“When buying and selling a CryptoRuble, the rate will be 13 percent from the earned difference. If the owner cannot explain the reason for the appearance of his CryptoRubles, when converting them into Russian rubles, the tax for him will be 13 percent of the total,”

Russia’s Deputy Minister of Economic Development Oleg Fomichev explained that the CryptoRuble which is set to become Russia’s national digital currency will soon be moved to international markets, thus emphasizing there’s no point in circulating the CryptoRuble inside of Russia only:

“This mustn’t be a private currency, but the one, which is issued by the state, controlled by the state and enable to provide circulation of digital money in light of the digital economy,”

Is this an ominous sign of the future of “private” cyrptocurrencies” and government intervention in the free markets? Just imagine China following into the footsteps of Russia without prior warning, i.e. issuing a CryptoYuan and taxing or banning Bitcoin altogether…