Russian Minister: Russia Will Issue Own Cryptocurrency, CryptoRuble

The minister explained that this does not mean the legalization of Bitcoin and other cryptocurrencies.

Russian President Vladimir Putin has decided that his country will issue its own cryptocurrency, to be called the CryptoRuble. This is according to Nikolai Nikiforov, Minister of Communications and Mass Communications, quoted in a report by Argumenty i Fakty (Аргументы и факты), a Russian language newspaper which is owned by the local government of Moscow.

In his opinion, the CryptoRuble will be issued quickly. “I so confidently declare that we will launch a cryptocurrency for one simple reason: if we do not, then in two months our neighbors in the Eurasian Economic Community will do it,” the minister said.

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The Russian solution is planned to streamline the payment of personal income tax. So, if the owner can not explain the reasons for the holdings of his CryptoRubles, when exchanging them into standard Russian rubles, the tax on him will be 13% of the total. When buying and selling a CryptoRuble, the amount will be 13% from the earned difference. “All these issues have yet to be discussed,” explained Nikiforov.

The minister also explained that the creation of a CryptoRuble does not equal the legalization of Bitcoin and other cryptocurrencies. Russia’s cryptocurrency should use Russian cryptography, the minister said. In addition, the users will not be able to mine the currency, as is common for private cryptocurrencies. Nikiforov explained that most likely, it will be a closed model with a certain amount of regulated emissions.

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