Vladimir Putin: Russia Will Issue its Own Cryptocurrency

If for example, the holder can not explain the origin of his/her cryptorubles, s/he will have to pay a 13% tax on the sum.

Minister of Communications and Mass Media of Russia Nikolai Nikiforov gave a reason why Russia made a decision to introduce CryptoRuble.

The minister also noted that the introduction of the cryptoruble will not legalize the use of Bitcoin and the likes, even though mining and using those cryptocurrencies now is not explicitly forbidden in Russian Federation.

Reports now indicate that the President of the Russian Federation, Vladimir Putin, has issued a statement indicating that Russia will soon start issuing what it calls the CryptoRuble. "If the owner cannot explain the reason for the appearance of his cryptorubles, when converting them into Russian rubles, the tax for him will be 13% of the total".

During the last couple of months, Russian Federation has had a passive-aggressive stance toward digital currencies, yet in the past, the country had numerous plans for the good of the crypto community.

This tax will also be applied to any appreciation in value, although it's unclear how or if the coin will be tied to the fiat currency. He said, "If we do not, then after two months our neighbors in the EurAsEC [Eurasian Economic Community] will", according to CryptoCoinsNews.

According to the report, it will not be possible to mine the new virtual currency, which will be controlled and maintained by state authorities. However, holders will need to pay 13 percent tax if they don't provide proof of origin, a measure meant to combat money laundering. While details are light, it appears that CryptoRubles will be blockchain-based.

One potential use case for the new Russian cryptocurrency could be to streamline payments of personal income tax, which AIF's coverage seems to be extensively focused on, though Nikiforov stated that further discussion would still be needed to iron out details of any implementation.

The Russian president had recently been extremely critical of bitcoins - one of the most popular cryptocurrencies on the market. But apparently Putin feels different about a cryptocurrency that is overseen by the government.

According to Nikolay Nikiforov, the national cryptocurrency can not be mined.

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