Russian president Vladimir Putin has decided to embrace technology and announced the introduction of the first state-backed Cryptocurrency, the Crypto-Ruble, to make it work both for the government, businesses and consumers.
Russia has made history today, when Putin endorsed the creation of a soon to be unveiled CryptoRuble, the world’s first cryptocurrency endorsed by a sovereign state.
The CryptoRouble helps open up Russia for new entrepreneurial ventures while insuring that possible fraud and money laundering loopholes are closed.
In Russia, the debate then quickly evolved into to a question over what role if any, a government and central bank should have in respect of cryptocurrencies.
They can be exchanged for regular rubles at any time, though if the holder is unable to explain the source of their CryptoRubles, a 13% will be levied. 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.
Long time advocates of cryptocurrency in the retail and wholesale sector will almost certainly look with interest to this new development. The phenomenon will de-mystify the process for many possible cryptocurrency users.
Independent financial traders can use the CryptoRuble to avoid the sanctions against Russian banks which their own anti-libertarian western governments have imposed.
During September’s BRICS Summit in Xiamen, there was a great deal of discussion regarding the establishment of a cryptocurrency for the BRICS nations (Brazil, Russia, India, China, South Africa) and their partners.
A BRICSCoin could help to stabilize India’s monetary markets after Modi’s decision to ban the 500 and 1,000 rupee notes, which hit the incomes of many working class Indians.
While monetary radicals throughout Russia have welcomed the move, President Putin justified the creation of the CryptoRouble on far more pragmatic grounds.
Russia could be at the forefront of a pan-Asian phenomena that could eventually go global. This will also translate into Russian blockchain technology becoming uniquely attractive to other states looking to develop their own ‘official’ cryptocurrency.
Mint Press / ABC Flash Point Monetary News 2018.