In recent cryptocurrency news, President Vladimir Putin of Russia has reportedly ordered the creation of the ‘cryptoruble,’ Russia’s very own cryptocurrency. He also reportedly urged Russia’s central bank not to put up any “unnecessary barriers” to cryptocurrency in general as to encourage the usage of said domestic currency. The currency itself will be regulated, although the extent is not specified within the article. Additionally, the cryptoruble will not be mineable like its counterparts, thus further distancing the cryptoruble from other cryptocurrencies.
Russia’s Minister of Communications and Mass Media, Nikolay Nikiforov, specifies that “we will [soon] launch a cryptocurrency for one simple reason: If we do not, then in 2 months, our neighbors in the Eurasian Economic Community will do it.” This is not to be mistaken as the legalization of other cryptocurrency usage in Russia, however. The cryptoruble is meant to be the only cryptocurrency used in Russia, as implied with the regulations said to be placed on it from its conception. The finance ministry of Russia is expected to draft a bill to instate this currency by the end of the year.
https://news.bitcoin.com/putin-issue-russias-national-cryptocurrency-cryptoruble/
https://news.bitcoin.com/putin-issue-russias-national-cryptocurrency-cryptoruble/
I do not know much about cryptocurrency but it sounds like Russia should make their decision soon. Other European countries will definitely start using their own variations on BitCoin as a form of exchange. The European nations should create a cryptocurrency that is accepted throughout their region and even into Asia. That would be more effective than only having currencies in each country.
ReplyDeleteIt may be a good decision for Putin to be proactive in attempting to form a "cryptoruble", however the hype around cryptocurrencies is almost entirely because of the recent internet fame for bitcoin. In addition to this, I believe that bitcoin is able to act as a global currency, rather than have tons of smaller cryptocurrencies for each country. I'm interested to see how the future of cryptocurrencies plays out, in the sense, will bitcoin remain king or will other cryptocurrencies develop and the legitimacy of an electronic currency be solidified?
ReplyDeleteIt is interesting to see that Russia will be launching their very own cryptocurrency. I am curious as to how people will be able to acquire this currency and how it will be accepted as a form of payment. Will stores have to adapt and install new technology in order to receive this as a type of payment? Will people receive this currency as if it was acting like a direct deposit from their employers? This decision could be very beneficial for Russia; however, it could definitely have its downsides as well. For example, how would this cryptocurrency impact inflation?
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