Russia Considers Launching A Stablecoin

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Rumours of a state-backed cryptocurrency pegged to the Russian Ruble resurfaced during the last couple of days.

Russian State Duma Committee on Financial Markets’ chairman has expressed that he believes the government will back a cryptocurrency, as long as it is “a ruble-pegged” one.

Chairman Anatoly Aksakov clarified that should the coin come into existence, it would be a blockchain-based stablecoin pegged to the Ruble by a ratio of 1:1.

Furthermore, the coin would be backed by a corresponding banking deposit. The bank would then issue an amount of the cryptocurrency using the blockchain technology, ensuring the 1:1 proportion.

Aksakov also clarified that since it would be backed by fiat currency, the state-backed cryptocurrency would be issued by the central bank.

It isn’t the first time that the idea of a Russian state-issued cryptocurrency was brought up. The plans to create such a coin, also called the CryptoRuble, was already announced by the Russian Association of Cryptocurrency and Blockchain (RACIB) at the beginning of this year. RACIB also claimed that the cryptocurrency would be launched in the middle of 2019.

The crypto penetration in Russia is on the rise. During this past FIFA World Cup, it was possible to pay for accommodation using cryptocurrency in multiple places. There are also local cryptocurrency exchanges, including one by Moscow’s “Kursky Vokzal” train station.

 

Images courtesy of Shutterstock.com

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