Russian president Vladimir Putin has called for a state-issued cryptocurrency – the cryptoruble.
According to Russian publication AIF, a closed-doors meeting between President Putin and Moscow's political elite at the city's Capital Club led to Putin make the significant decision to have Russia issue its own cryptocurrency, dubbed the 'cryptoruble'. Details of the meeting were revealed by Russian minister of Communications and Mass Communications Nikolai Nikiforov.
The senior government official also claimed the cryptoruble will be developed and issued 'quickly' by the Russian state. While details of the technology used for the cryptocurrency remain scarce, Nikiforov added the cryptocurrency cannot be mined.
The minister said in a statement:
I so confidently declare that we will launch the cryptoruble for one simple reason: if we do not, our neighbors in the Eurasian Economic Community will do it in 2 months.
The cryptoruble, effectively a cryptocurrency that will be legal tender in the Russian Federation, will also see certain adopters incur personal income tax. If the owner is unable to declare the source of cryptorubles, a flat tax of 13% will be levied when converting the cryptocurrency into Russian rubles. Similarly, an automatic 13% tax slab will also be levied on the earned difference of transactions involving buying and selling a crypotoruble. According to Nikiforov, these details are yet to be discussed.