As the news goes, Russia has decided to issue its own official cryptocurrency, with the name of CryptoRuble. Russia has decided to launch the currency after keenly observing the technology trend. However, it is said that the CryptoRuble will not follow the decentralized system like other cryptocurrencies.
The news was first released by the CoinTelegraph which was later confirmed by the Russian government’s minister of communications, Nikolay Nikiforov.
The Russian government on the onset did not acknowledge the idea of cryptocurrencies and deemed them to be illegitimate replacements of the official currency. However, despite its opinion on these currencies, the government has been working to create its own.
CryptoRuble shall be “Un-Mineable”
Rumors suggest that the CryptoRuble cannot be mined giving the government full control over tracking and issuing the currency. This is seen as a disadvantage because the main point of having a cryptocurrency is to free commerce from government run fiat-currencies. However, the CryptoRuble might be Blockchain based which will give it at least a little spark of decentralization.
The whole point of decentralizing a currency is to prevent fraud. The CryptoRuble can be exchanged freely. However, whether the trade will be official or unofficial is not known yet. Although the government might try to gain an overall control of the currency, unofficial trade will still emerge.
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13% tax on untracked transactions
One more thing that should be considered is the proof of origin. Upon every exchange, a proof of origin will be required. This will further develop a system free of fraud as traders will have to give an official document regarding the transaction. However, failing to do so will impose a 13% tax on that trade. Although it is unknown if the coin will be connected to the general Russian currency, the tax will be applied if the value of the currency increases.
This move might be seen as the government taking benefit from illegal trades through issuing a 13% tax, but this will destabilize the further increase of online frauds. Crypto experts might not like the idea of Russia stepping in the cryptocurrency game, but as it is totally legal, the online economists can’t stop it either.