Putin to use National Cryptocurrency: 'Cryptorouble' to Escape Sanctions
Russia has been under sanctions imposed by the European Union and western countries and it has been claimed that it found a way to avoid these sanctions. Of course, this way is linked to the cryptocurrency market.
Actually, the fact that a national cryptocurrency could help the country on that direction was first mentioned by the Russian President's economic advisor, Sergei Glazev. Glazev reportedly told some Russian officials that a national digital currency, the cryptoruble, could turn out to be a very useful tool when it comes to evading international sanctions.
Putin ordered the launch of a national digital currency
Allegedly, this is the reason why the president of Russia, Vladimir Putin, has ordered the country's financial authorities to work on launching a national digital currency.
The Financial Times reported that Glavez stated that with the cryptoruble, the country could make transactions around the world with no need to worry about sanctions.
“This instrument suits us very well for sensitive activity on behalf of the state. We can settle accounts with our counterparties all over the world with no regard for sanctions.”
According to the same media report, Glavez did not provide a lot of details about the way this cryptocurrency will function. However, he reportedly said that the circulation of the digital currency will be submitted to some restrictions. Furthermore, the government will have full oversight of the digital currency.
The media report also indicated that according to some unnamed Moscow officials, Putin was the one who commissioned work on the new cryptocurrency. The Communications Minister of the country revealed in October that authorities have been talking about a national cryptocurrency. He also said that the digital currency would be quickly created.
It is believed that unlike other cryptocurrencies, the cryptoruble will not be mined. This means that it will most likely be issued by The Central Bank of Russia. Putin previously talked about both the benefits and the risks of cryptocurrencies back in October, but nothing else has been revealed about the upcoming cryptoruble.
