The CryptoRuble might put an end to some of crypto's most challenging weeks in Russian Federation, where the government blocked cryptocurrency exchanges despite a repeated show of interest for digital cash. The topic of their discussion wasn't clear, but a bit later, in August, it was reported that Buterin was working on the adoption of blockchain technology in Russian Federation. The details still remain unclear, but Nikolay Nikiforov, Russian Minister of Communications, has revealed some useful points.
The new currency will use Russian designed encryption in a bid for it to remain traceable. The local reports indicate that CryptoRubles can be exchanged for regular rubles, although provenance will be a key - undocumented acquisitions (as through money laundering) would be subject to a 13 percent tax, according to reports.
The idea behind the introduction seems to be to boost the country's online economy in a way that doesn't need dependence on foreign money markets or third party transaction brokers. The same tax will be applied to any earned difference between the price of the purchase of the token and the price of the sale.
The national digital currency will be moved to global markets, according to the Russia's Deputy Minister of Economic Development Oleg Fomichev, stressing that there is no point in the currency circulating only inside the country.More news: Florida declares state of emergency ahead of Richard Spencer appearance
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The minister said once the digital currency or CryptoRuble is issued other cryptocurrency mining will be banned and it will be entirely regulated by the government.
At a meeting with financial leaders in Sochi last week, he blasted it for being "risky and used for crime".
While the declaration implies that Russian Federation will enter the cryptographic money world, it is not the slightest bit an assertion or authorization of Bitcoin or some other decentralized digital currency.
Mr Putin's calls for more regulation sent the price of bitcoin soaring.