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Centralized Cryptoruble Not Possible, Minister Tells Putin

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In December CBR’s deputy president Olga Skorobogatova announced that “Russia may start consultations with partners from the Eurasian Economic Union and BRICS on creating a common digital coin to be used by member states in their interactions.”

She said indicating a change in Centrobank position,”The introduction of a national digital currency seems not entirety justified from the point of view of macroeconomics.”

Finance minister Anton Siluanov told President Putin that the Russian ministry of finance is not against a national Cryptocurrency. This provided the state does not participate in it. The creation of a centralized coin like the Cryptoruble, seems impossible, as Cryptocurrencies are based on decentralized ledgers.

Though Russian government is not issuing any national Cryptocurrency, the government is in favor of Cryptocurrency.

Minister Siluanov has tried to educate Russian head Vladimir Putin’s request to study possibilities to emit a so called cryptoruble. The Russian Ministry of finance would not object to a private project to create a Russian Cryptocurrency under the supervision of financial authorities. This is subject to the Russian government not investing in the currency.

In the document, acquired by interfax, Siluanov states that emitting a centralized national Cryptocurrency seems impossible given the technical features of such emissions.”Crypto currencies are based on decentralized ledger technologies.” the minister points out.

Minister also notes that using distributed ledger technologies comes with some legal and technological limitations. In that respect, he mentions the relatively small number of transactions block chain like those of Bit coin and ethereum, can currently be processed.

The minister says “Attempts to use a national Cryptocurrency to attract foreign investments would apparently have to deal with the need to exchange it for a foreign currencies,”. In the future, the trading of a Russian national Cryptocurrency may be limited on an international platforms.

Common Critique

Critics often insists that blockchain transactions may be used to fund illicit activities like drug ,smuggling, terrorism, money laundering. This is because blockchain transactions are completely anonymous and untraceable. Confidentiality is not guaranteed for military purposes also.

Russian deputy finance minister Alexey Moiseev labeled Bitcoin “a pyramid scheme”.
Deputy minister said that the creation of Cryptoruble seemed impractical to the finance Ministry. The bank strongly opposed the legalization of decentralized Cryptocurrencies, like Bitcoin.

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