CryptoRuble – A Digital Version of Russian Ruble
Vladimir Putin, the president of Russia, is more interested in creating the government-owned Cryptocurrency called CryptoRuble rather than trusting something out there like Bitcoin or Ether.
Recently, Putin has slammed Bitcoin saying that it allows money launders especially the ones associated with criminal activities to escape. Also, he concluded that Bitcoin is a pyramid scheme.
The crypto version of Ruble is yet to see the daylight. As you might expect, the Russian government ultimately controls the currency.
Apparently, the blockchain technology will power the currency. There is no mining. So, you cannot earn some CryptoRuble with your computing power. There would be no cap on the supply limit. The authorities can create as many coins as they want.
CryptoRuble can be exchanged anytime with the Ruble. If you are unable to explain the source of the coins, you have to pay 13% tax. It seems like the communist government does not want to put an end to the illegal activities.
Also, the CryptoRuble value would not be the same as the actual Ruble. The value can deviate, go up or down. In case you had gained profits by holding the CryptoRuble, i.e., capital gains, you should pay 13% tax on the profit.
Having a complete control by a single authority and comprehensive tracking does not sound like the characteristics of a real Cryptocurrency. Through the decentralization, the risk of online frauds would minimalize. And using no traditional payment gateways in between proves to be a much better solution.
The good part is that the Kremlin is embracing the blockchain technology. After all, understanding and adopting the technology is more important than the currency itself.
Do you think introducing a currency like CryptoRuble can abolish the banking system? And eases the use for ordinary people? Let us know your comments.