What Is CryptoRuble?
The CryptoRuble is a digital currency currently in development, commissioned by Russian President Vladimir Putin. It will not be a cryptocurrency in the way that Bitcoin is, as it will be issued by the government with no mining involved.
The value of the CryptoRuble will be identical to the value of a regular ruble. The first pilot group for the testing of the digital ruble was formed in June 2021 and includes 12 banks.
Vladimir Putin announced in October of 2017 that Russia would be issuing its own state-sponsored cryptocurrency—the CryptoRuble. The CryptoRuble, although not formally launched, began its testing phase in June 2021. The digital ruble will be issued by Russia’s Central Bank as a central bank digital currency (CBDC) and managed by the Russian government.
In 2022, the bank is expected to allow citizens to test the currency. The idea is that CryptoRuble will help decrease costs within the financial system while boosting competition among banks. It’s worth noting that Russia still doesn’t recognize digital tokens or cryptocurrencies as legal tender.
Goals of CryptoRuble
It is speculated that one of the main reasons for Putin’s interest in blockchain is that transactions are encrypted, and thus easier to discreetly send money without worrying about sanctions placed on the country by the international community.