Russia plans to introduce its own cryptocurrency, while outlawing the use of all others, local media reported Friday, citing Federal Financial Monitoring Service (Rosfinmonitoring) Deputy Director Pavel Livadny.
According to the Kommersant publication, the move will help assure that the cryptocurrency will not be used in illicit schemes, consumer rights are protected and it may also reduce the costs of financial transactions.
The new currency would have to be governed by Russian laws and will have an issuer, which may be a financial group, whose activities would be licensed.
According to the project, 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 peril to the financial stability of Russia.