The Russian markets could soon be flooded with a homemade cryptocurrency, being dubbed the “Cryptoruble”, if the word of one Anatoly Aksakov is to be believed.
Aksakov is the chairman of the Russian State’s Duma committee on financial markets. Talking to a local news outlet, RIA Novosti, he predicted that the “Cryptoruble” may be introduced in about 2-3 years.
The idea is, as he says, to have a digital version of the Ruble, which would be no different in practice from the fiat currency but with the added benefits of existing on a blockchain.
The matter in consideration was previously discussed on Nov. 2, 2018, when Anatoly Aksakov said that his agency was contemplating launching a cryptocurrency as an alternative to the fiat ruble.
The history of Russian authorities and the Cryptoruble dates back to almost 2015, when two payment service providers, WebMoney and Qiwi, were denied by the Central Bank of Russia (CBR) separately when they presented the concept of a state-controlled cryptocurrency.
In June 2017, the CBR had indeed confirmed the development of a cryptocurrency via an announcement. Olga Skorobogatova, CBR’s deputy chairwoman, had said:-
“We will definitely get to a national digital cryptocurrency. We have already started working on it.”
In October, 2017, President Vladimir Putin had claimed that cryptocurrencies represented “serious risk” and were an accessory to the crime, with CBR stating that it would block all websites selling Bitcoins and Altcoins.
Trouble > Stability?
If indeed a stablecoin is launched by the Russian Government, there are massive doubts over its bankability from an economic point of view since the last few years have been, to say the least, turbulent for the Russian economy. The persistent decline against the US dollar amid tensions with the West is a testimony to this fact.
This can be attributed to many factors – Russia banning Western imports, allegations of Russian interfering in the 2016 U.S. elections to name a few.
However, the biggest worry for Russia is the continuous ambiguity over cryptocurrency regulations. The lack of collaboration on the same between CBR and Duma has led to laws accepted by Duma last year, being deferred in implementation by the CBR in its entirety.
Aksakov comments on the cryptorubble come at a time when rumour has it that cryptocurrencies, like Bitcoin, which have been deemed as unofficial tokens in Russia, have seen an upsurge in the quantity purchased by Russian citizens.