After denouncing other cryptocurrencies, Russia is planning to join the cryptocurrency game. Russian President Vladimir Putin has officially stated that Russia will issue its own ‘CryptoRuble’ at a closed-door meeting in Moscow.
How Will Russian Cryptocurrency CryptoRuble Be Different?
So how will this new Russian cryptocurrency be different? Well, in a true Russian manner, it is unlikely to share the truly decentralized nature of other cryptocurrencies such as Bitcoin and Ethereum.
While it does appear to be blockchain-based, according to local news sources CryptoRuble cannot be mined. It will instead be issued, controlled and maintained only by the authorities.
It can be exchanged for regular Rubles at any time. Upon exchange, CryptoRubles will reportedly require some kind of proof of origin, probably like a documented retail transaction or service rendered.
Wait… Didn’t Russian Central Banks Denounce Cryptocurrencies?
Yup, they did so just last week. The news of CryptoRuble comes after KseniaYudaeva, the first deputy governor of the Central Bank of Russia denounced cryptocurrencies last week. Yudaeva stated that “The ruble is the only transactional currency allowed in Russia as far as we are concerned.” The Russian Central Bank has come down at least twice in the last month on all cryptocurrencies. Putin himself called cryptocurrencies risky business last week, saying that they were used for orchestrating illicit activities.
To be fair, Yudaeva did hint that blockchain technology was welcomed in Russia. Only cryptocurrencies used to fund risky start-up enterprises, and exchanges that allow for anonymous Swiss-bank style accounts will be viewed with caution.
With this, the creation of CryptoRuble could give the Russian government the ability to dictate its way into the world of the cryptocurrencies.
Forex Market Update: EUR/GBP Erasing Gains
The EUR/GBP pair has been reversing its gains earlier in the month, testing the key pivot level of 0.8870 during today’s Asian market open. The pair remains below the Ichimoku cloud with the future cloud turning bearish. The Kijun line seems to be just breaking below the Tenkan line on the daily Ichimoku Kinko Hyo setup.
