Russia Reveals Plans To Make Its Own National Cryptocurrency

[Hydrogen]

Russia is making its own blockchain currency. According to the Russian News Agency, the chairwoman of the Russian Central Bank announced regulators now agree national cryptocurrencies are the future.  “After our pilot projects we will understand what system we could use in our case for our national currency," chairwoman Olga Skorobogatova told the crowd at the St. Petersburg International Economic Forum. However, it’s still unclear how Russian cryptocurrency would live alongside global blockchain tokens like bitcoin and ether.

Over the past few months, Russia has moved to legalize and regulate cryptocurrency trading. Skorobogatova previously said an outright ban on bitcoin and currencies of its ilk would be infeasible. Unconfirmed reports from Russian news aggregators claimed on Friday that Herman Gref, the CEO of Russia’s Sberbank, will help develop a “Russian Bitcoin,” to serve as “the only cryptocurrency freely available [cryptocurrency] for sale and purchase.”

Earlier this year, Gref said at a conference Russia could have industrial-scale blockchain deployment by 2019. But according to Reuters, Russian authorities have historically been skeptical about bitcoin, associating it with money laundering and terrorism. Treating bitcoin as parallel currency is currently illegal in Russia. Only time will tell how regulators will treat competing cryptocurrencies as the new policies take shape.

Elvira Nabiullina, governor of the Russian Central Bank, said the Kremlin does not plan to make bitcoin itself a legal tender. "We don't consider that bitcoin can be considered as a virtual currency. It's more digital assets with the regulation of assets," she told CNBC.

Despite the uncertainties, many Russian bitcoin traders are celebrating. “Thousands of people are taking part of this [blockchain] movement, you see a conference in Moscow almost every week. You see Russian blockchain media with big traffic,” said Alexey Antonov from Moscow, a financial advisor at the Russian Supercomputer Organized by Network Mining. SONM plans to launch their initial coin offering in June and make blockchain technology without hash-based traditional cryptocurrency mining.

Antonov said he is excited for Russia to make a sort of crypto-ruble. “I’m glad the Central Bank of Russia established some regulation and their own cryptocurrency,” Antonov told International Business Times. “We think that in Russia there will be some official currency, it will be better for all of us, because we’ll have a method to transfer money from our blockchain companies. It’s better than nothing.”

In the near future, Antonov said blockchain could help regular Russian citizens and businesses, not just the tech-savvy startup community, by simplifying small business loans. “Obviously, it will be very regulated,” he said. “Maybe we can store our money and pay our taxes legally, it would be great. Right now you can’t spend bitcoin or exchange it for ruble.”

Russia isn’t the only one making a national cryptocurrency. Both China and the Palestinian Monetary Authority recently announced they too plan to make national cryptocurrencies. Meanwhile, Reuters reported Japan and South Korea are working on ways to recognize cryptocurrencies like bitcoin, integrating decentralized blockchain tender into their national monetary systems. It looks like Russia will be the next government to usher its blockchain community out of the shadows into a cryptographic economy.

Antonov said he thinks Russian government officials are tuned in to the broader blockchain landscape. “They are really good at understanding what’s going on in our crypto-world,” he said.

http://www.ibtimes.com/russia-bitcoin-news-country-plans-make-its-own-national-cryptocurrency-2547168

If I remember right, iceland tried to create its own national crypto currency years ago: aurora coin.

As an american it pains me to see every country in the world be more progressive and innovative than we are.

I constantly feel like america is run by the least intelligent people in the world.

Fools who could never see an advantage or benefit in using crypto the way that russia can.

USA is falling behind other nations in every way as a result of our poor leadership and the extremely narrow minded and closed minded views of those who hold positions of power. The SEC which hinders innovation and progress by refusing a bitcoin ETF is a prime example of it.

[jonald_fyookball]

aurora coin is barely alive

https://coinmarketcap.com/currencies/auroracoin/

[iamTom123]

Russia must be feeling jealous at Bitcoin and they must be asking themselves that if Bitcoin can be successful...why can't we instead introduce our own cryptocurrency and have all the people use them so it can rival that of Bitcoin?

Sadly, I have not yet seen any country-backed cryptocoin to ever reached even 1% of the success Bitcoin generated so far. Why? It is because a country-released cryptocurrency is running counter to the very reasons why we have Bitcoin.

Now, I am not saying that Russians have no chance to pull this into a success...but what I am saying is that if they are doing it for the reason above then they might be in for a very big surprise.

They can be a laughingstock in the end while Bitcoin has already reached the $100,000 level.

[L00n3y]

Russia must be feeling jealous at Bitcoin and they must be asking themselves that if Bitcoin can be successful...why can't we instead introduce our own cryptocurrency and have all the people use them so it can rival that of Bitcoin?

Sadly, I have not yet seen any country-backed cryptocoin to ever reached even 1% of the success Bitcoin generated so far. Why? It is because a country-released cryptocurrency is running counter to the very reasons why we have Bitcoin.

Now, I am not saying that Russians have no chance to pull this into a success...but what I am saying is that if they are doing it for the reason above then they might be in for a very big surprise.

They can be a laughingstock in the end while Bitcoin has already reached the $100,000 level.

During the cold war, the Russian government remain competitive in other countries up to these days. Couple of months ago I've read that the Russian government banned the banking cartel of the Rothschild in their country. So it's not hard to believe that they are planning something like that. With the acceptance of other countries to Bitcoin I think it would be hard to dethrone the king of cryptocurrencies. Let's just wait for more updates and news on this one. And invest on their altcoins 

[irukandji]

They might need to make it quantum resistant, or we might find out just how good the NSA is. 

[digaran]

A crypto currency if not being decentralized and open source then it's not a crypto currency, Bitcoin is successful for the two reasons mentioned above.
When people worldwide could potentially own and mine a coin and operate mining farms to an extent which renders any government unable to control the network that's called a crypto currency being decentralized.
No matter what a country going to call it, that is not a publicly available ledger.

[Juggy777]

Russia is making its own blockchain currency. According to the Russian News Agency, the chairwoman of the Russian Central Bank announced regulators now agree national cryptocurrencies are the future.  “After our pilot projects we will understand what system we could use in our case for our national currency," chairwoman Olga Skorobogatova told the crowd at the St. Petersburg International Economic Forum. However, it’s still unclear how Russian cryptocurrency would live alongside global blockchain tokens like bitcoin and ether.

Over the past few months, Russia has moved to legalize and regulate cryptocurrency trading. Skorobogatova previously said an outright ban on bitcoin and currencies of its ilk would be infeasible. Unconfirmed reports from Russian news aggregators claimed on Friday that Herman Gref, the CEO of Russia’s Sberbank, will help develop a “Russian Bitcoin,” to serve as “the only cryptocurrency freely available [cryptocurrency] for sale and purchase.”

Earlier this year, Gref said at a conference Russia could have industrial-scale blockchain deployment by 2019. But according to Reuters, Russian authorities have historically been skeptical about bitcoin, associating it with money laundering and terrorism. Treating bitcoin as parallel currency is currently illegal in Russia. Only time will tell how regulators will treat competing cryptocurrencies as the new policies take shape.

Elvira Nabiullina, governor of the Russian Central Bank, said the Kremlin does not plan to make bitcoin itself a legal tender. "We don't consider that bitcoin can be considered as a virtual currency. It's more digital assets with the regulation of assets," she told CNBC.

Despite the uncertainties, many Russian bitcoin traders are celebrating. “Thousands of people are taking part of this [blockchain] movement, you see a conference in Moscow almost every week. You see Russian blockchain media with big traffic,” said Alexey Antonov from Moscow, a financial advisor at the Russian Supercomputer Organized by Network Mining. SONM plans to launch their initial coin offering in June and make blockchain technology without hash-based traditional cryptocurrency mining.

Antonov said he is excited for Russia to make a sort of crypto-ruble. “I’m glad the Central Bank of Russia established some regulation and their own cryptocurrency,” Antonov told International Business Times. “We think that in Russia there will be some official currency, it will be better for all of us, because we’ll have a method to transfer money from our blockchain companies. It’s better than nothing.”

In the near future, Antonov said blockchain could help regular Russian citizens and businesses, not just the tech-savvy startup community, by simplifying small business loans. “Obviously, it will be very regulated,” he said. “Maybe we can store our money and pay our taxes legally, it would be great. Right now you can’t spend bitcoin or exchange it for ruble.”

Russia isn’t the only one making a national cryptocurrency. Both China and the Palestinian Monetary Authority recently announced they too plan to make national cryptocurrencies. Meanwhile, Reuters reported Japan and South Korea are working on ways to recognize cryptocurrencies like bitcoin, integrating decentralized blockchain tender into their national monetary systems. It looks like Russia will be the next government to usher its blockchain community out of the shadows into a cryptographic economy.

Antonov said he thinks Russian government officials are tuned in to the broader blockchain landscape. “They are really good at understanding what’s going on in our crypto-world,” he said.

http://www.ibtimes.com/russia-bitcoin-news-country-plans-make-its-own-national-cryptocurrency-2547168

If I remember right, iceland tried to create its own national crypto currency years ago: aurora coin.

As an american it pains me to see every country in the world be more progressive and innovative than we are.

I constantly feel like america is run by the least intelligent people in the world.

Fools who could never see an advantage or benefit in using crypto the way that russia can.

USA is falling behind other nations in every way as a result of our poor leadership and the extremely narrow minded and closed minded views of those who hold positions of power. The SEC which hinders innovation and progress by refusing a bitcoin ETF is a prime example of it.

I feel your pain mate, I am not at all surprised to see Russia do this, for quite a while there was a buzz something like this was about to happen, what surprises me is why isn't USA doing something, it's the biggest super power and look it's doing absolutely nothing, it should have been pioneer in taking this technology and should have made huge advancement with it, I am yet waiting for President to Elect that we accept Bitcoins! Let's make America great and let's give Bitcoin power to people, if he succeeds in it, then it shall be simply awesome. Japan adopted it, Russia did it, I hope next Is USA.

[pinkflower]

Its not a real cryptocurrency if its distribution is centralized. And how are they going to deploy it? Are they going to use POW, POS or something else? Whos allowed to hold it and how will the Russians stop foreigners from holding some?

If its really decentralized, what about sybil attacks? Im sure lots of hackers would love to play around with a nation backed crypto. America, your country needs you.

[davis196]

A crypto currency if not being decentralized and open source then it's not a crypto currency, Bitcoin is successful for the two reasons mentioned above.
When people worldwide could potentially own and mine a coin and operate mining farms to an extent which renders any government unable to control the network that's called a crypto currency being decentralized.
No matter what a country going to call it, that is not a publicly available ledger.

Yes,but what if more people trust a cryptocurrency because it gets all the goverment support from a strong country?Mining support,regulations,incentives...
The russian altcoin will have any success only if people around the world accept it.
If it stays only in Russia,it will be like aurora coin.

[Herbert2020]

which country is this, the fifth or tenth that has said a similar thing! i think the first one that i've heard was China and the latest (before Russia) was India. and i still don't get what they want to achieve by doing this. i mean i get the interest in blockchain technology and why banks would want to use it in their banking system but a country releasing an official crypto! that sounds weird to me.

[el kaka22]

which country is this, the fifth or tenth that has said a similar thing! i think the first one that i've heard was China and the latest (before Russia) was India. and i still don't get what they want to achieve by doing this. i mean i get the interest in blockchain technology and why banks would want to use it in their banking system but a country releasing an official crypto! that sounds weird to me.

They will learn from their own mistakes. There will be no point on having country specific cryptocurrency. A centralized system. People may start using it but surely will find no differences from their existing fiat systems. On a positive side, I do foresee these types of government initiatives may promote bitcoin awareness indirectly.

If I remember right, iceland tried to create its own national crypto currency years ago: aurora coin.

No, some devs air dropped it to Iceland people based on verifying citizenship, no other government involvement. Even if I am wrong, what differences aurocoin made into Iceland's economic growth or at least in crypto world what it has done significantly. I read many tragic stories of our forum member's losses due to aurora coin's hype and pump.

Russia may have a coin, but it will be just another altcoin sooner or later.

[2bfree]

The reason my country has a "peoples bank" is to steal from the people by deception. If they had a country back free real cryptocurrency they could not steal from the farmers, workers etc... My country is full of lazy entitled governement loving burocrats and if they had to pay all the lazy parasites without stealing via paper money 90% of them would be gone! So no they will have use free money they only use tyrants money that the "peoples bank" prints to steal from me and pay the jerk who does nothing gets free demdical, dental and pension and it's stolen from me!

[stompix]

Sadly, I have not yet seen any country-backed cryptocoin to ever reached even 1% of the success Bitcoin generated so far. Why? It is because a country-released cryptocurrency is running counter to the very reasons why we have Bitcoin.
 

There was no altcoin issued by a country.
Even auroracoin was an independent project.

Most of them were pure scams that's why they ended so bad.
And if the Russians will enforce their coin as a payment method it will not die so easily.

Most important it will their attitude towards bitcoin once they have rucoin active.

Its not a real cryptocurrency if its distribution is centralized. And how are they going to deploy it? Are they going to use POW, POS or something else? Whos allowed to hold it and how will the Russians stop foreigners from holding some?

If its really decentralized, what about sybil attacks? Im sure lots of hackers would love to play around with a nation backed crypto. America, your country needs you.

What is so hard to understand.
They issue coins and you can go to you bank deposit 100 rubles and get 100 whatevercoin.

And hold your horses, one successful attack against a coin using the blockchian will be bad for bitcoin also.

[mindrust]

The funny thing is, the game is already over. It doesn't matter if those new coins are being backed by Russia, China or USA. They'll be named as altcoins no matter what.

Russia already has its fiat which you can use with credit cards. Another poor attemp to create a bitcoin killer.  

Those countries don't understand one simple thing. Bitcoin is strong because there's no country behind it.

[Iranus]

Sadly, I have not yet seen any country-backed cryptocoin to ever reached even 1% of the success Bitcoin generated so far. Why? It is because a country-released cryptocurrency is running counter to the very reasons why we have Bitcoin.

I agree that there are problems with centralised distribution, and a country-issued cryptocurrency wouldn't "replace" Bitcoin per se, but it definitely would achieve more success.

It's easy to overestimate how principled and virtuous people are.  The answer is that they're not at all either of them.  Bitcoin is a fringe currency for now, and if marketed correctly a country-issued cryptocurrency could be extremely popular.


The problem is that blockchain technology is just so damn good when done correctly that a government with billions to spend on marketing and development can produce something which is extremely appealing to the general public due to its low fees and convenience.

[franky1]

ok.. guess some people need to check sources
in short nothing new.

1. aurora coin was not government created it was citizen created and tried to get mainstream adoption..
2. russia and all other government based efforts to get into 'blockchain' are done via hyperledger.. yep that includes russia.

https://www.cryptocoinsnews.com/russias-biggest-bank-joins-hyperledger-blockchain-project/

[deisik]

The funny thing is, the game is already over. It doesn't matter if those new coins are being backed by Russia, China or USA. They'll be named as altcoins no matter what.

Russia already has its fiat which you can use with credit cards. Another poor attemp to create a bitcoin killer. 

Those countries don't understand one simple thing. Bitcoin is strong because there's no country behind it.

They understand everything

And they are not really going to create any government backed coprocoin. These are just words, empty words, which lost their meaning long ago. Mark Twain said it over 100 years ago that you shouldn't believe anything of what you hear (and half of what you see). The Russian economy is stagnating at best now (even according to official reports), and Putin's regime (or should I rather say clique?) consisting mostly of oligarchs should get themselves busy with solving more mundane issues that the country is going to face in the nearest future (and is already facing). The best they can do is just go away

[DoublerHunter]

Another plan again for their own national cryptocurrency? I think it will not work like bitcoin unless it is centralized and they banned bitcoin from their country so their countrymen will be forced to use their national cryptocurrency but overall it is not a big deal for bitcoin users because just create as much currency as you want but nothing can stop bitcoin.

[franky1]

They understand everything

And they are not really going to create any government backed coprocoin. These are just words, empty words, which lost their meaning long ago. Mark Twain said it over 100 years ago that you shouldn't believe anything of what you hear (and half of what you see). The Russian economy is stagnating at best now (even according to official reports), and Putin's regime (or should I rather say clique?) consisting mostly of oligarchs should get themselves busy with solving more mundane issues that the country is going to face in the nearest future (and is already facing). The best they can do is just go away

seems you may not know much of russia.
you do know russia has many trade deals with the west.
yep
you can get iphones, computers, cars, kids toys,
yep kids in russia are playing with 'fidget spinners' (current western craze), hoverboards, and everything else the west plays with
yep russia has mcdonalds, KFC and many other western food outlets
if you think america hates russia, your wrong.. america is actually paying russia to send astronauts into space (taxi to international space station)

i find it strange how people compare russia to north korea. i guess it may be due to the fox news hypnotism and reddit regurgitation of fud

but with all that said. thinking that many countries governments wont bother using blockchain, is like the titanic thinking the iceburg wont do any damage.

its better to know the real situation, than to pretend there is not a problem. especially bad when you see people hide a problem using quotes of people who have not been alive for the last few years, decades, century and them taking such quotes out of context.

mark twains context is. dont take things on face value.. do your own research beyond what you see or hear

if you really want to do some research into what governments are doing in regards to blockchain.. here is a key word to start your research 'hyperledger'

have a nice day

[bitbunnny]

I don't think that any government sponsored coin could be successful, not in Russia or anywhere else. This is kind of rasponse to Bitcoin success but they can't compete. With this Russia is probably trying to show that they are not against cryptocurrencies but it has to be under government control. So Putin style.