Putin Orders the Issuance of Russia’s Own Cryptocurrency

The President of Russia, Mr. Vladimir Putin has reportedly ordered the issuance of his country’s own cryptocurrency. This new cryptocurrency is expected to be called the “cryptouble”. Details of this digital currency were revealed by the Russian Minister of Communications.

The Minister, Mr. Nikolay Nikirofov said that at an exclusive meeting with members of the Moscow Capital Club, the President instructed that a cryptocurrency for the Russian Federation be issue – this is as reported by the AIF newspaper on Saturday.

This decision is a result of a meeting the President had with Russia’s top regulators last week where he directed that the central bank should not put impediments in the way of cryptocurrencies. He believes hat cryptocurrency participation should be rather encouraged. Referring to text on the government’s directive about the issuance of the cryptoruble, Nikolay Nikirofov stated that;

“I so confidently declare that we will soon launch a cryprocurrency for one simple reason: if we do not, then in two months, our neighbors in the Eurasian Economic Community will do it.”

Additional details about Cryptoruble;

The Russian Minister of Communication believes that Cryptoruble will be issued quite soon. The new currency will be so efficiently engineered to enable the easy payment and monitoring of personal income tax.

Russia currently runs a flat tax rate of 13%. Putin has however called for a reform of the current tax regime to help boost the nation’s economic growth. According to the Moscow Times, Mr. Putin ordered an adjustment of the Russian tax code in 2018 for a subsequent implementation in 2019.

AIF additionally reported the Russian Minister to have said;

“When buying and selling a cryptoruble, the amount will be 13% from 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% of the total.”

It is also to be noted that Cryptoruble cannot be mined. The minister said that it is expected to be a closed model with a certain volume of regulated emissions.

After the meeting with the President, the regulators decided that Russia will regulate cryptocurrencies progressively instead of putting impediments in the way of its growth and adoption.