Russian President vladimir putin has ordered Russian officials to launch their country's digital currency, called the digital ruble (cryptoruble), and that it will help ease the pressure on western sanctions.
At a recent government meeting, Sergei Glazev, putin's economic adviser, told other officials that the digital rouble could be used as a "useful tool" to circumvent and weaken international sanctions.
According to the financial times, Glazev said:
"The digital ruble will be very applicable to some sensitive economic activities in the country. We can trade deals with partners around the world without having to think about obstacles such as economic constraints.
The financial times also quoted officials in Moscow as saying that President putin had arranged for them to develop a digital currency. The digital ruble is essentially a digital equivalent of the French currency, "but its circulation will be limited," Glazev added. The official gave no further details, but confirmed that the kremlin would fully monitor the process of the digital currency development.
In mid-october, the CCN reported on a closed-door meeting between putin and Moscow's political elite. Nikolai Nikiforov, the Russian communications minister, first revealed putin's plan to develop the country's digital currency. Nikiforov says the digital currency will soon be developed and released.
He said, "I'm very confident to announce that we will launch a number of roubles for one simple reason: if we don't do this, our neighbors in the Eurasian economic community will be 2 months to do so".
Crucially, this digital currency cannot be mined, but only issued by the central bank. Russia's central bank (CBR) has launched a pilot project in 2017 aimed at boosting the country's digital currency.
Putin, who began his presidency in 2000 as Russia's second and fourth President, has announced that he will run for President in March and April 2018.
In October 2017, Mr. Putin acknowledged that digital currencies are or have become a comprehensive payment method in many countries around the world, as well as a means of investment. Mr Putin added that the digital currency also had "significant risks". Over the next few weeks, Mr. Putin approved a regulatory framework for Russian ICO projects and digital currency mining.