Russia plans own cryptocurrency, would ban bitcoin

mlawson71

Corporal
Messages
188
Russia is planning the introduction of its own national cryptocurrency and the banning of bitcoin and all other existing ones, reports the Russian business daily Kommersant.

According to sources of the media from the Federal service for financial monitoring (Rosfinmonitoring), the cryptocurrency will be tightly regulated, its issuers – licensed, exchanging – subject to rules and anonymous payments with it – next to impossible. The new currency would probably lower the cost of financial transactions and provide better protection of the diligent consumes. Russia is also planning to ban the use of all other existing cryptocurrencies because they may be used for financing of terrorism, other criminal activities and money laundering.

Currently Rosfinmonitoring is conducting consultations with Russia’s central bank, the finance ministry, representatives of the banks in the country and other interested parties, but there is no draft legal framework yet, nor a comment from the Bank of Russia.

The eventual national cryptocurrency will not be “mined” by anonymous computers across the world, like the currently existing cryptocurrencies, but will rather have a licensed issuer with responsibilities and rights. Exchanging rubles or other currencies into the Russian digital currency will be done at “designated electronic platforms” under tight rules, mostly focusing on the identification of the clients.

According to Kommersant’s sources, the introduction of the new cryptocurrency will most likely coincide with banning the use of the anonymous cryptocurrencies in the country. This is not a new idea – a draft law in this regard has been published last year on Russia’s platform regulation.gov.ru and representatives of Bank of Russia have openly spoken against the cryptocurrencies and the “surrogates”. At the same time, however, the central bank is looking into the blockchain, the distributed ledger technology underlying the bitcoin, as means to develop new financial transaction systems.

The idea for banning the use of “foreign” cryptocurrencies has been received with mixed feelings by Russia’s financial sector. Alexandr Galitskiy from Almaz Capital Partners told Kommersant that bans are generally a bad idea in terms of international cooperation and urged for the adoption of the existing technologies, rather than banning them. On another hand, Evgeniy Korchago, a lawyer, noted that the cryptocurrencies in Russia are totally unregulated. “If you pay for something in cryptocurrency and you are defrauded, there is no one to complain to. Not a single court in the country will hear your case,” Korchago said and added that the introduction of a regulated national cryptocurrency would be useful for all.

At the same time while Russia is trying to ban the use of bitcoin and isolate itself, Japan is making steps towards legalizing the cryptocurrencies as “regular” means for payment.

Source: smnweekly.com/2016/05/27/russia-plans-own-cryptocurrency-plans-to-ban-bitcoin/
 

Addam

Recruit
Messages
259
Not surprising… Russia loves doing things differently. However, from another perspective, they can’t be blamed either. After all, the volatility witnessed in crypto does call for greater prudence and if Russia takes such a stand, you can’t blame them entirely.
 

TrapLok

Recruit
Messages
127
People are attracted by the Bitcoin and other cryptos only due to their decentralized behavior. I do not how they will behave after the launch of Russian digital currency which would be tracked and regulated by the government. Will it be a wise choice to invest in that currency?
 

TrapLok

Recruit
Messages
127
If Russia is launching the crypto of its own then we have to support it. Yes, if you want to gain profit from a currency then you have to keep other aside. It is the rule and Russia is doing good for the betterment of their own digital currency. Thank you so much for paying attention!
 

Areding

Recruit
Messages
4
I think that Russia has other concerns now and as far as I know they have no plans to issue their own currency or legalize it at all
 

scott11

Recruit
Messages
127
I think that this is going to become common with central banks in the rest of the world as IMF Chief supported CBs issuance of their own cryptos during last year. Is it regulators way to fight current deregulated crypto market, or some easier way to move society to cashless economies?
 

Olieng38

Corporal
Messages
99
I don’t think it will have fast start and will bit bitcoin immediately, but who knows. Any way there should be no rush. Another big doubt here is the legislation. I don’t think that Russia is ready to regulate the question of crypto currency so you never know how it will end up.
 
Top