Russian Parliament Set To Make The CryptoRuble Legal Tender

With legislation to regulate the mining and trading of cryptocurrencies still awaiting consideration by the Russian Parliament, one lawmaker has introduced a draft bill to create a national cryptocurrency called "the CryptoRuble."

“The amendments proposed by the draft law ... codify the digital financial asset as a legal means of payment on the territory of Russia,” the document’s explanatory note reads.

Interestingly, the draft law was submitted by a Communist Party MP named Rizvan Kurbanov.  The law proposes several amendments to the Russian Civil Code that will make the CryptoRuble a legal means of payment circulated nationwide.

In October, Russian President Vladimir Putin ordered the issuance of a national cryptocurrency - which many interpreted as a sign that Russia is warming to the new technology after initially seeking to ban it.

Ruble

Many businessmen, including some with ties to Putin and his government, have sought to expand cryptocurrency mining operations in the country.

The document proposes several amendments to the Russian Civil Code, which would make the CryptoRuble a legal means of payment circulated nationwide. The bill was submitted to parliament at the same time as another draft law aimed at regulating the mining and circulation of digital financial assets in Russia.

There's some confusion about the future of cryptocurrency policy should the CryptoRuble become a reality.

Communications Minister Nikolay Nikiforov said last year that the introduction of a state currency should preclude the mining of all other cryptocurrencies, according to RT.

According to the bill, financial transactions involving the cryptocurrency are to be taxed at the rate of 13%, applied to any appreciation in value, or 13% of the total if the owner can’t explain the source of the digital coins.

The CryptoRuble will also be promoted for circulation on international markets, according to Russia’s Deputy Minister of Economic Development Oleg Fomichev, who stressed the CryptoRuble is designed to become Russian “digital money in light of the digital economy.”