[2018-01-03] Putin Adviser Says ‘CryptoRuble’ Will Circumvent Sanctions, Governm

[cybersofts]

Putin Adviser Says ‘CryptoRuble’ Will Circumvent Sanctions, Government Remains Divided



At a recent government meeting, Sergei Glazyev, economic adviser to President Putin, said the ‘CryptoRuble’ could help alleviate the pressure of Western sanctions, The Financial Times reported Monday. However, there is still no unified official stance from the Russian government on the question of issuing a national digital currency.

The Russian CryptoRuble is essentially a digital ruble -- a government-issued digital currency accepted as legal tender.

According to FT, Glazyev stated that a government-controlled cryptocurrency like the CryptoRuble would help Russia disregard Western 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.”


A divided front

Glazyev’s positive stance on the CryptoRuble is the latest position in the ongoing back and forth on the topic within the Russian government.

According to Russian news agency TASS, during a Dec. 28 meeting on legislation for digital currencies in Russia, government officials spoke negatively about the CryptoRuble.

Both the Deputy Minister of Finance Alexey Moiseev and first Deputy Governor of Russia's Central Bank, Olga Skorobogatova, stated that they did not see a need for issuing a national digital currency.

However, in June 2017 at the St. Petersburg International Economic Forum, Skorobogatova held the opposite position, saying:

    “We will definitely get to a virtual national currency, we’ve already started working on it.”


Not a new question

The Russian government has been publicly discussing the idea of a government-issued digital currency as legal tender as far back as 2015. Originally, Qiwi, a publicly traded Russian payment service provider, initiated the idea for a Russian national cryptocurrency called ‘BitRuble.’

The Russian State Duma has an official working group in place that looks at cryptocurrency risks and regulations. Though there have been reports about possible outright cryptocurrency bans in Russia in the past, the government’s official stance remains unclear, leaning toward regulation of digital currency use.


Source: https://cointelegraph.com/news/putin-adviser-says-cryptoruble-will-circumvent-sanctions-government-remains-divided

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[Basmic]

Let eyes say anything. I know him personally. He is a man of the past. His era ended with the collapse of the Soviet Union. He may not be experts in modern conditions. Crypto ruble will not help Russia. It would be worthless to the ruble. Russia can not circumvent sanctions. The key to the success of cryptocurrency is trust. Now the Russian do not trust anybody.

[Irvinn]

It has long been discussed in Russia and around the world that it can bypass international sanctions, using the anonymity of a decentralized crypto currency. However, in my opinion, a centralized cryptor in this plan will not help Russia. This digital coin will not be trusted and in great demand, especially outside of Russia itself.
       In general, that neither the news from Russia about the future of the crypto currency in this country, then every time it contradicts the previous one. In Russia, all can not decide how to treat the crypto currency. The ruling regime there can not give its citizens a relative financial freedom and this is the whole problem.

[hatshepsut93]

I don't see it realistically happening, currently very few if any big companies use Bitcoin or other cryptocurrencies for their operations, because it's quite risky due to Bitcoin's uncertain legal status that can change at any time, so why would someone would adopt this CryptoRuble? And on practice, to circumvent sanctions you have to hide your operations by spoofing some other parties on your place, because your partners from countries that sanctioned you will have to explain to their authorities the source for their income/goods, even if it's cryptocurrency. So, privacy coins like Monero would actually be better for circumventing sanctions, because only with them you can brake any links to your real identity.

[Samarkand]

... so why would someone would adopt this CryptoRuble? ...

Because Russia has a ton of natural resources (oil, gas...). They could simply demand
payment for access to their gas pipelines in CryptoRuble and by doing this circumvent
existing sanctions. Right now they have a hard time doing business, because the international
financial system is heavily subject to the whims of the USA. A cryptocurrency like
the CryptoRuble would be completely independent of US sanctions, because they can´t really shut
down a cryptocurrency - provided the Russians create it with a redundant or maybe even a decentralized
structure.

I´d guess that Venezuela will probably be the first country that issues a cryptocurrency
in order to circumvent international sanctions.

[hatshepsut93]

... so why would someone would adopt this CryptoRuble? ...

Because Russia has a ton of natural resources (oil, gas...). They could simply demand
payment for access to their gas pipelines in CryptoRuble and by doing this circumvent
existing sanctions. Right now they have a hard time doing business, because the international
financial system is heavily subject to the whims of the USA. A cryptocurrency like
the CryptoRuble would be completely independent of US sanctions, because they can´t really shut
down a cryptocurrency - provided the Russians create it with a redundant or maybe even a decentralized
structure.

I´d guess that Venezuela will probably be the first country that issues a cryptocurrency
in order to circumvent international sanctions.

They can't shutdown a cryptocurrency, that's true, but they don't need to, they will just make it illegal and prohibit to their companies to use it. Again, the only real way to circumvent sanctions is through money laundering, sanctioned countries have to use some proxies to do businesses with companies from the country that imposed those sanctions.
Governments were talking about using other currencies for selling natural resources for decades, and since this hasn't happened before, there's no reason why it should be different with cryptocurrencies.

[CryptoBry]

I don't see it realistically happening, currently very few if any big companies use Bitcoin or other cryptocurrencies for their operations, because it's quite risky due to Bitcoin's uncertain legal status that can change at any time, so why would someone would adopt this CryptoRuble? And on practice, to circumvent sanctions you have to hide your operations by spoofing some other parties on your place, because your partners from countries that sanctioned you will have to explain to their authorities the source for their income/goods, even if it's cryptocurrency. So, privacy coins like Monero would actually be better for circumventing sanctions, because only with them you can brake any links to your real identity.

Any cryptocurrency can be creatively utilized to get away from sanctions and this is one of the many issues against Bitcoin when the government into its operation and technology. Now, cryptorubble if that thing can be legally backed by the Russian government than it can be become the digitalized version of the rubble. however, we know that if it is just another government project the chance for failure can be higher than usual. Let's see how will Petro from Venezuela can be paring as they already have it introduced.