Bitcoin Beware: Russia Developing National Cryptocurrency

MOSCOW (Sputnik) — Russia plans to introduce its own cryptocurrency, while banning the use of all others, local media reported Friday, ciring Federal Financial Monitoring Service (Rosfinmonitoring) Deputy Director Pavel Livadny.

According to the Kommersant newspaper, the move will help ensure that cryptocurrency is not used in unlawful schemes, consumer rights are protected and it may also reduce the costs of financial transactions.

The new currency would have to be regulated by Russian laws and will have an issuer, which may be a financial organization, whose activities would be licensed.

According to the proposal, citizens will be able to exchange Russian rubles and other currencies for the cryptocurrency on special online platforms. The process will require a person’s identification in order "to minimize anonymous transfers."

Rosfinmonitoring has reportedly started talks with the Finance Ministry and Central Bank officials on the idea.

Head of the Russian Investigative Committee Alexander Bastrykin said in April that the spread of international cryptocurrencies could force legal money from the market, creating a threat to the financial stability of Russia.