Russia may soon get its very own state-controlled cryptocurrency – the CryptoRuble. Unlike other digital currencies such as Bitcoin and Ethereum, CryptoRuble will reportedly have a far limited decentralised nature and may even be tracked by the Kremlin.
According to local reports that cited Russian communications minister Nikolay Nikiforov, Russia's cryptocurrency will be designed so it cannot be mined and will not be blockchain-based. However, users will reportedly be able to freely exchange Rubles and CryptoRubles.
Reports of CryptoRuble's alleged launch follows the Russian government taking serious steps to ban other cryptocurrency websites after president Vladimir Putin reportedly warned of risks associated with digital currencies. It is still unclear as to how soon Russia's state-controlled cryptocurrency may be launched. According to Nikiforov, if Russia doesn't launch its own digital currency soon then European and Asian markets may beat it to the punch.
Unlike other traditional digital currencies, CryptoRuble will reportedly require users to provide the government with some sort of identity proof to avoid a 13% tax, which the government plans to levy to deter money laundering and other online fraud.
CryptoRuble may be the ideal way for the Kremlin to boost Russia's online economy without relying on third-party brokers or foreign currency markets. It will also likely provide the Kremlin with greater autonomy in regulating and tracking the digital currency platform and economy.