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Could Russia launch a state-run "BitRuble"?

By NexChange
FinTech

The Russian state could launch its own version of Bitcoin. At least that's what's being speculated after the Central Bank of Russia put together a team to research blockchain technology.

This is less than a week after Sergey Solonin, general director of Russian payment services provider Qiwi, said his firm was developing BitRuble: a blockchain-based digital currency pegged to launch in 2016. According to the Coin Telegraph, this has led to a rumor - further spread by Spain's El Mundo - that BitRuble could be a new national digital currency overseen and managed by the state central banking system .

This is interesting because the Russian state has been very critical of Bitcoin and even banned Bitcoin-based websites for a brief period at the beginning of the year. Only last week Russian Ombudsman Pavel Medvedev said Bitcoin was "absolutely illegal" and called it "technical hooliganism," his point being that only the Russian state should be able to issue money in the country.

This latest development is not a case of the Russian state getting on board with Bitcoin, but more likely a case of it using blockchain technology to exert greater control over the use of digital currency. Whatever Russia's next move is, it will set an interesting precedent for state adoption of crypto-currencies.
Photo: Nickolas Titkov
 

 

 

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