According to President Vladimir Putin, Russia will officially launch its own cryptocurrency, the CryptoRuble, to compete with other nations.

Though recent news that could see Russia impose a ban on Bitcoin exchanges might seem to indicate a hard stance on digital currencies, President Vladimir Putin has now announced that his country will issue an official cryptocurrency – a CryptoRuble – at a closed-door meeting in Moscow.
The news surfaces through Russian Minister of Communications Nikolay Nikiforov, who confirmed that the Russian CryptoRuble would be issued, controlled, and maintained only by authorities – according to Nikiforov, the CryptoRuble would not be mined and would be eligible for exchange into regular Rubles at any time.
Read: Bitcoin shatters past $5000 USD – cementing a new all-time high
Nikiforov clarified that a 13% tax would be levied on CryptoRubles in the event that an owner could not explain their origin, and that the same tax would be levied on any difference between the purchase price of the token and the price of the sale when the cryptocurrency officially launches.
According to Nikiforov, Putin’s motivation for launching a CryptoRuble is to ensure Russia’s early dominance in an emerging bouquet of national cryptocurrencies – Putin reportedly announced in a meeting that “I confidently declare that we run CryptoRuble for one simple reason: if we do not, then after 2 months our neighbors in the EurAsEC will.”
Though the announcement will place Russia in good stead in promoting its own currency, the news is unlikely to result in a softened stance on other cryptocurrencies such as Bitcoin or Ethereum – potential remains for Russia to issue an all-out ban on cryptocurrency exchanges operating within its borders to better regulate the CryptoRuble.
Russia’s decision echoes that of other cities and nations – just recently, the city of Dubai announced its own cryptocurrency in the form of emCash.
Read: China may resume cryptocurrency trading by licensing Bitcoin exchanges
What are your thoughts? Be sure to let us know your opinion in the comments below!
Follow Bryan Smith on Twitter: @bryansmithSA