Russian President Vladimir Putin recently headed for its own digital currency. His advisor already warned that the concept would not allow mining. Meanwhile, central bank and the Ministry of Finance in Moscow have expressed their skepticism .
As we have already reported, Putin wants to introduce crypto ruble as soon as possible in order to circumvent Western sanctions. Since the annexation of Crimea in 2014, Obama administration has frozen significant amounts of funds . In addition there are extensive restrictions that affect Russian oil and technology companies. Over the last few years, this has had a very negative impact on exports and also on the country’s economic situation. Putin is already found a team of experts to plan the issue.
The Financial Times quotes Putin’s consultant Sergey Glazyev saying that the proposed crypto currency is an effective tool to circumvent US sanctions. According to Glazyev, the crypto-ruble should work like the country’s traditional currency. Only the money cycle should be restricted to ensure state control.
After a paper with technical details was presented in October by the Minister of Telecommunications, Nikolai Anatolyevich Nikiforov, Deputy Minister of Finance Alexei Moiseev announced that the name had to be cyber-ruble. It should not be crypto currency in the traditional sense, which will soon be issued by the Russian government. Putin consultant Glazyev also speaks of a centrally controlled currency, which should not correspond to a self-regulating system such as Bitcoin. Glazyev, on the other hand, highlights the benefits of discreetly executed transactions, which can circumvent all export bans. The cyber or crypto-ruble also protects the Moscow government from theft and crime. In addition, every transaction will be permanently traceable.
The Ministry of Finance and the Central Bank reject Putin’s plans. There is no need for a separate crypto-ruble so soon. Russian Finance Minister Alexey Moiseev recently warned against abandoning the basic principles of central banks for their own digital currency. They also said that such currency is not suitable for implementation in the Russian economy. According to Olga Skorobogatova, the deputy president of the central bank, this must be transnational. In conjunction with the other BRICS states, such an introduction would be much more promising than if Russia were to go it alone.
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