Tuesday, February 25, 2020

Russia Considering The Idea Of A Stable Coin Backed By Ruble

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Grace Joseph
Freelance Writer, Blogger, and Crypto Enthusiast. Studied Computer Science in University and Undergoing a Masters Degree Programme in Computer Engineering Contact@ reigngracia@gmail.com

The Russian State Duma has considered the development of a Stablecoin whose price is expected to be more stable than other popular cryptocurrencies in the volatile market. This was made known on Friday, Nov 1, by the chairman of the Duma Committee on Financial Markets, Anatoly Aksakov.

While speaking during a press conference, the operation of Stablecoin was revealed by the Chairman who explained that after a bank deposit has been made, the cryptocurrency will be delivered by the Central Bank via Blockchain technology. In the delivery of the coin, the Bank was to follow a one to one ratio of this cryptocurrency with the ruble.

The coin will be fully owned and controlled by the state, and as such, it will not have the same decentralized nature of Bitcoin. Also, this is a ruby-pegged coin that will be tradeable with the nation’s currency, Russian Ruble. On top of that, the coin will be non-mineable and probably, the only legal cryptocurrency in the country.

Since the government will regulate this cryptocurrency, it differs from common cryptocurrencies like Bitcoin and Ethereum which are decentralized and are not regulated by the Central Bank or Federal Reserve. Also, the latter is not tied to only one currency, unlike the Stablecoin that is being pegged to money without any intrinsic value.

This is not the first time Russia has considered launching its cryptocurrency because they have been making plans and deliberating since 2015. That being so, there was the CryptoRuble, formerly known as Bitruble which was expected to be the official Blockchain-based currency of the country.

In early 2018, the Communications Minister, Nikolay Nikiforov stated that;

We’re launching CryptoRubles for one simple reason: if we do not, then after two months it will be done by our neighbors in EurAsEC (Eurasian Economic Community – RBTH)

There have also been reports of a Stablecoin that will be launched by a reputable Russian metals and mining company, Norilsk Nickelis. The CEO of the company, Vladimir Potanin, stated that:

Norilsk Nickel will soon launch stablecoin, pegged to the metals it mines. We will offer the market a crypto asset with less volatility than other well-known cryptocurrencies, and with more obvious ties with real values.

If these are all the same coin and part of Russia’s plan to implement its plans when it comes to Blockchain technology finally, then this Stablecoin will be launched in mid-2019. Alternatively, the CEO said that some factors could only determine the exact time.

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