Duma State Chairman – Ruble Backed Stablecoin Will Resemble Fiat Ruble

Wilfred Michael 

Wilfred Michael

News reporter

09 November 2018,
15:07
Duma State Chairman – Ruble Backed Stablecoin Will Resemble Fiat Ruble

Any plans to launch a stablecoin backed 1:1 by the native Russian currency, Ruble, is still only a ‘fantasy’ according to the state Chairman who raised the dust while speaking at a press conference last week. In a more recent update, he shared his thoughts on what could happen if the country decides to create a stablecoin.

Mr. Anatoly Aksakov who heads the Committee of Financial Markets in Russia State Duma, told local news agency, RIA Novosti, that such a stablecoin would be equivalent to 'fiat ruble.’

According to the Chairman’s comment in the news publication, it will be “the same ruble, just in encrypted form.” Both versions can be exchanged for the other as he further explained.

"For example, you bring 100 thousand rubles to a bank and get 100 thousand crypto rubles, one to one for fiat money. You use these funds to buy goods fixed in the blockchain.” the report read.

Aksakov also believes that the crypto rubles will be a preferable option for many in the future when blockchain becomes a significant part of the Russian economy. Right now, however, he said the stablecoin is still a ‘fantasy’ that he has in his head regarding the future financial landscape.

 

Crypto Regulation In Russia Will Happen Before Stablecoin

Creating a stablecoin pegged to fiat currency is usually the work of a country's central bank. Therefore, it is right to believe that a sort of regulation will have to be in place before such a unit of value is rolled out.

Currently, the status of crypto-related businesses such as ICOs and exchanges in the country is not defined, and it will be the first hurdle to be crossed for massive adoption of cryptocurrencies and blockchain technology to take place.

Mr. Anatoly Aksakov said that “plans to adopt laws on cryptocurrency and crowdfunding” (ICO) in Duma State should be expected “by the end of the year.”