Ethereum-Based ‘Cryptoruble’ Token Under Development in Russia – According to Sergey Mendeleev, CEO of decentralized finance (defi) banking platform Indefibank, work is already underway in Russia to introduce a “tokenized cryptoruble” on the Ethereum blockchain. He made this announcement at the Blockchain Life 2022 conference.
According to the executive, the token will be issued via a decentralized smart contract with surplus collateral or in accordance with the DAI stablecoin’s model. It will have a 1:1 exchange rate with the Russian ruble. Forklog, a source for cryptocurrency news, cited Mendeleev as saying:
“A user can either independently issue a cryptoruble by placing sufficient collateral in the form of stablecoins or cryptocurrency on the balance of a smart contract, or purchase it from an authorized exchanger for fiat.”
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The quantity of collateral will have a direct impact on the entire supply. The size of the potential market among private individuals is estimated by Indefibank to be between 5 and 10 billion rubles (about $82 – $160 million).
The creators of cryptoruble anticipate that additional cryptocurrency enthusiasts will support the initiative and that eventually the project will stand alone as a decentralized autonomous organization (DAO). The central bank digital currency (CBDC) produced by the Bank of Russia will have no connection to the cryptoruble, which is a means of payment.
Russia’s central bank promised to push its virtual currency in international trade after the country recently acknowledged that it would require cryptocurrencies to avoid sanctions. The regulator raised doubts about the necessity of legalizing private digital currencies and made it plain that discussions do not pertain to permitting domestic crypto payments.
Russian legislation does not mandate that the creation of a DAO and the issuing of ERC20 tokens be coordinated with the central bank, according to Indefibank’s CEO. The company is prepared to change the cryptocurrency’s name, though, if the monetary authority objects to the usage of the word “ruble.”
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Mendeleev argued that the cryptoruble will make it simpler for Russians to enter international markets and settle with foreign partners. The report reveals that the token’s creators have already developed an MVP, with the unveiling of the finished product scheduled for October.
