Vladimir Putin, the Russian President has reportedly ordered that work is started to create a cryptocurrency for the country. It is believed that Putin wants to start work so that he can find a way through which Russia could manage the international sanctions levied against the country. However, it is also reported that the central bank of Russia together with the finance ministry of the country have highlighted their doubts about the cryptocurrency.
Russia has been under international sanctions led by the western countries. Reports indicated that Putin had sanctioned for work to start on establishing a nee cryptocurrency for the country. An economic adviser to Putin, Sergey Glazyev, is believed to have also mentioned in one recent government meeting that cryptorouble, as it is called, would be good for the country. Reports also indicate that he mentioned the importance it would have in relation to sanctions. He also added that the new cryptocurrency would be the same as the rouble but would be limited in certain ways of its circulation. This limit in circulation would, therefore, allow the Kremlin to track the currency without problems.
After Putin ordered for the creation of a cryptorouble in October, the Minister of Communications and Mass Media in Russia, Nikolay Nikiforov, then went on to submit proposals for the currency a week later. At the time, he just noted that the proposals were technological proposals and nothing more. Then in November, the Deputy Minister of Finance, Alexei Moiseev, also indicated that the proposed cryptocurrency might not be a cryptocurrency in particular. He also suggested that there would be a change in name from cryptorouble to cyber-rouble at the time.
In December, Glazyev then proposed his own version of the currency. At the time he also suggested that the currency be used for state and corporations settlements. In his notes, he also added that the currency should not be made available for mining, but rather would only be issued by the responsible authorities. However, even with all of Glazyev’s enthusiasm in creating a cryptocurrency fast, the central bank and the Finance ministry are still skeptical. Both entities claim they don’t see a need for cryptorouble.
Moiseev, at a meeting where the bill of regulation of cryptocurrencies and initial coin offerings was shown, said that the ministry was not in any way hurrying to create the currency. On the other hand, the first deputy governor of the central bank, Olga Skorobogatova, said that from the macroeconomic perspective, this cryptorouble was not advisable. However, she did acknowledge that the country was in some way engaged in ways to find a common cryptocurrency with other countries such as the BRICS or the Eurasian Economic Union.