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.”

Comments

Automatic Choke J S Bach Sat, 01/27/2018 - 19:20 Permalink

Russians are good at complex currency transactions.   When I was there, before the ruble floated freely, there was a 10x difference between the "official" and the black-market ruble-$ conversions.....and everybody was facile at both calcs.

They were also facile at doing currency calcs w/ abacus....not sure if that is the case anymore.

 

In reply to by J S Bach

ed31337 Luc X. Ifer Sun, 01/28/2018 - 01:13 Permalink

No, moving to a blockchain where the state controls the taxation ruleset is not going to make for a desirable cryptocurrency. People will always seek the best cryptocurrency with the least overhead. Nobody will run mining operations or otherwise prefer transacting with cryptorubles taxed at 13% when they could just as easily use other cryptocurrencies that aren't taxed.

Russia can try to force their own citizens into using cryptorubles, but the world at large will not come flocking to adopt them. Foreign exchange will still be transacted in Bitcoin or other untaxed cryptos. Cryptoruble coins are second class currency.

In reply to by Luc X. Ifer

shitshitshit Sat, 01/27/2018 - 19:11 Permalink

Left unsaid is whether this crypto will be administered by the central bank or the government. That could be interesting if it were the later (after all isn't it minting?) because it would set a precedent to derail the banking cartel. 

Same question applies for the Venezuelan project of course. 

Mr_Potatohead Sat, 01/27/2018 - 19:15 Permalink

" 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 "

But if you use bitcoin or another private cryptocurrency in Russia, it's okay not to pay this tax because bitcoin is outside of their system and the Russian government is committed to honoring the rights of all bitcoin advocates to get around their system.

MusicIsYou Sat, 01/27/2018 - 19:18 Permalink

The CryptoRubble. Oh so it's exactly the same as the CryptoDollar that's been here for over four decades but stupid westerners think Cryptocurrency is a new thing. Ha, you folks are such monkeys. So basically we're gonna have the Petro-Yaun and the Petro-Ruble and the Petro-Dollar is crashing. Say, hello third world U.S. Well, Americans think like apes, so they should live like apes as well.

Baron von Bud east of eden Sat, 01/27/2018 - 20:03 Permalink

The bankers (fed) see cryptos as competition. The government sees it as a conduit to bribery, tax evasion, money laundering, and major drug dealing. Bitcoin will be destroyed because it poses a major threat to centralized control. BTC owners need to wake up. Current cryptos show the promise of distributed money sans central elites and corrupt governments. For crypto to be successful it needs a better 'internet' network that's not so easily hacked and tracked. The East has a long knowledge of conflict and massive death and sees no place for it. If they're not destroyed by the West, then we have the possibility of better money used over a much better network. The East isn't 'democratic' and took quickly to the crazy idea of communism. That's our trade-off. I'd take my chances with the West. Salute the flag ... and buy gold.

In reply to by east of eden

ed31337 Baron von Bud Sun, 01/28/2018 - 01:28 Permalink

I totally agree that untaxed cryptocurrencies are going to need a better "internet" if they are going to survive. As it currently stands, all it takes is a few network packet filtering rules installed at key Internet service provider routers to block all use of present day cryptocurrencies. This is a major achilles heel that the crypto community will be forced to solve in the future.

There is hope however. The ubiquity of smartphones with local area networking capabilities and high mobility gives me hope that some sort of intermittent mesh network solution may be possible.

In reply to by Baron von Bud

ed31337 coast1 Sun, 01/28/2018 - 01:52 Permalink

Right now, there are coin exchanges where people exchange state backed fiat for cryptocurrencies. In the future, people will use coin exchanges to exchange between the different cryptocurrencies themselves. Exchange rates will be related to the general availability of each coin and the demand for each type of cryptocoin.

In reply to by coast1

WarPony Sat, 01/27/2018 - 21:08 Permalink

This will work when the (((IMF))) issues their crypto-Phoenix, backed by SDRs, since the Yuan already went into the basket.  Roll it out slow, begin excitement, crash the petro-dollar and re-set - voila - all your implantable RFID chips are belong to us - bitchez.

JailBanksters Sat, 01/27/2018 - 21:34 Permalink

If all countries had their own Crypto Currencies, then there would be no need for Central Banksters and all the shenanigans happening in the USA would come to an abrupt end overnight.

That's why there won't be Crypto Currencies around the Globe.

Yellow_Snow JailBanksters Sat, 01/27/2018 - 21:50 Permalink

A crypto issued by any government will be 'centralized' and will be corrupted in short order...  They might overtake fiat someday - but it will be plagued by the same problem of being manipulated by the central banks.

This is why it is so important to own 'decentralized' cryptocurrencies - they can not be regulated ever...  You can try to block citizen access but that's it.

In reply to by JailBanksters

Yellow_Snow Sat, 01/27/2018 - 21:34 Permalink

Seriously ???  

Why would anyone want to use a 'centralized', likely-corrupt, ' CryptoRuble' which is guaranteed taxed at 13% ?

Why not just use BTC, ETH, or LTC ?