News Good Idea or Bad Idea?

Good Idea or Bad Idea?


- Advertisment -

Russia May Introduce Ruble Stablecoin: Good Idea or Bad Idea?

Good Idea or Bad Idea?

Just weeks after mentioning the possibility of an oil-backed cryptocurrency, Russian officials have proposed a stablecoin that would be pegged to the national fiat currency, the ruble.

Also read: Killing the Ethereum Killer: EOS Is Not a Blockchain, Claims Report

Join the Bitsonline Telegram channel to get the latest Bitcoin, cryptocurrency, and tech news updates:

Ruble Stablecoin Could Be Nigh

The new proposal comes from Anatoly Aksakov, chairman of the committee for the financial markets at the State Duma, the lower chamber of Russian parliament.

“We’ll have a [national] cryptocurrency, but it will be backed by assets,” Aksakov was quoted as saying by the news service Moskva.

“This will be a coin issued by [Russia’s] central bank as it will be based on fiat money, and fiat money will be its backing,” he went on to say. “The [stablecoin’s] exchange rate to the ruble will be one to one.”

Good Idea or Bad Idea?
Chairman Aksakov is pushing for a cryptoruble.

According to Aksakov, the use of crypto in the Russian financial system is “promising.”

The fact that the idea comes from Russia’s legislative body means that a final decision on the ruble stablecoin would take much less time than under the normal process, wherein a government agency submits a draft law to the State Duma.

However, the idea will have to be discussed with the Central Bank before any further steps could be made. So far, there has been no comment from the regulator, which has been ambiguous about crypto in recent months.

So far, most stablecoins backed by fiat currencies have generally been pegged to the U.S. dollar, euro, or the Swiss franc. A ruble-pegged coin would be a first.

A Stablecoin for an Unstable Ruble?

One possible issue with a ruble-backed stablecoin is the Russian currency’s volatility. Many still remember the plunge the ruble took four years ago when the United States and the European Union slapped sanctions on Russia for the annexation of the Crimean peninsula from Ukraine.

By late 2014, the ruble lost nearly 50 percent of its value against the U.S. dollar and other major currencies. It has recovered somewhat since then, but losing around 10 percent of its value over short periods of time has not been uncommon as of late. With more sanctions looming, the ruble’s prospects remain uncertain.

Meanwhile, just last month, Igor Yusufov, Russia’s former energy minister and current head of oil and gas investment corporation Energia, proposed an oil-backed cryptocurrency that could be shared with other major oil-exporting countries.

The idea behind it is that the replacement of the U.S. dollar as the main price unit in the global oil market with an oil-backed cryptocurrency would help oil-exporting countries to diversify risks linked to vulnerabilities of their national currencies.

So for, no practical steps towards the introduction of the oil-backed coin have been made.

What’s your take? Is a ruble stablecoin a good or bad idea? Let us know in the comments section below. 

Images via Pixabay

Source link


Please enter your comment!
Please enter your name here

Latest news

3 Beginner Friendly Ways to Make Money with Cryptocurrency 2020

In this article, we will explain how to make money with cryptocurrency in 2020. These methods are...

Blockchain, Bitcoin, and Mashed Potatoes

According to studies, over the next 5 years, many of the major supermarkets are expected to...

Different Facets of Biometric Authentication and How They Are Making A Difference in The Financial Sector

When we think of authentication in the true sense, then we find ourselves amid the different proven...

UNICEF’s 125 ETH Investment Took Less Than 20 Minutes and Cost Less Than $20

"The digital world is coming to us faster than we could have imagined," said UNICEF chief Chris...
- Advertisement -Good Idea or Bad Idea?

Analysis: Is Bitcoin (BTC) Still Viewed As A Dark Web Currency?

There is a long past of Bitcoin (BTC) – due to its anonymity – being used in...

A Beginner’s Guide to Day Trading Crypto

Much of the activity that comes from the crypto-space originates from the crypto-trading community. Buying and selling...

Must read

Blockchain, Bitcoin, and Mashed Potatoes

According to studies, over the next...
- Advertisement -

You might also likeRELATED
Recommended to you