Developers are working on a “cryptoruble” that, as they say, will improve Russians’ access to global exchanges and be used for cross-border payments. Indefibank, the Defi platform behind the project, says the token will be tied to the national fiat but independent of the government-issued digital ruble.
Cryptoruble for international settlements to give Russian companies another option
Work is underway in Russia to launch a “tokenized cryptoruble” on the Ethereum blockchain, CEO of the decentralized finance (defi) banking platform Indefibank, Sergey Mendeleev, announced during the Blockchain Life 2022 conference.
The plan is to issue the token based on a decentralized smart contract profit bond or the model employed by the DAI stablecoin, the executive explained. The exchange rate with the Russian ruble will be 1:1. Mendeleev, quoted in the Crypto News Forklog, elaborated:
By depositing sufficient collateral in the form of Stablecoins or cryptocurrency on his smart contract balance, a user can withdraw his own cryptocurrency or buy it for fiat from an authorized exchange.
The total supply is directly determined by the amount on the guarantee. Indefibank estimates the potential market size between private individuals at 5 to 10 billion rubles (approximately $82 – 160 million).
The developers of CryptoRuble expect other members of the crypto community to join the initiative and see the project as an independent decentralized autonomous organization (DAO) in the future. The CryptoRuble will be a non-linked Central Bank Digital Currency (CBCC) payment instrument created by the Bank of Russia.
Russia’s central bank, which recently agreed that the country needs a cryptocurrency to avoid sanctions, has pledged to promote the digital ruble in foreign trade. The regulator clarified that discussions are not about allowing domestic crypto payments and expressed doubts about the need to legalize private digital currencies.
The CEO of Indefibank said that Russian law does not require the establishment of DAO and ERC20 tokens to cooperate with the central bank. However, if the monetary authority opposes the use of the word “ruble”, the company is ready to change the name of the crypto.
The cryptocurrency will make it easier for Russians to access global exchanges and negotiate with foreign partners, Mendeleev explained. The developers of the token have already prepared the MVP, the report shows that the final product is expected in October.
Do you think the Bank of Russia will allow currencies like cryptocurrencies to be used in foreign trade deals? Tell us in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
DisclaimerThis article is for informational purposes only. It is not an offer or solicitation to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the Company nor the Author shall be liable, directly or indirectly, for any damages or losses arising out of the use of or reliance on any content, goods or services referred to in this paragraph.