Russia formulates Ethereum-Based ‘Cryptoruble’ Token

At the 2022 Blockchain Life conference,  Sergey Mendeleev, the CEO of Indefibank, a decentralized finance (defi) banking platform has declared that Russia has started work on launching a tokenized cryptoruble which will be hosted on the Ethereum blockchain.

Mendeleev stated that they plan on using a decentralized smart chain contract with additional collateral to issue the token. He also added that another option is to use the model which is being employed by the DAI stablecoin. According to a report published by Forklog, a crypto news outlet, the exchange rate of the Russian Ruble to the token will be 1:1.

The amount in collateral will be the determining factor for the total supply of the coin. According to estimates done by Indefibank,  the potential market size among private individuals is 5 to 10 billion rubles which is around $82 – $160 million.

The developers of CryptoRuble expect cooperation from members of the crypto community. They also hope that members of the crypto community will later join in the initiative to make the project an independent Decentralized Autonomous Organization (DAO). 

The cryptoruble is not going to be related to the Bank of Russia’s central bank digital currency (CBDC). It will be employed as a tool of payment. The central bank of Russia has recently conceded that it needs to use cryptocurrencies as a tool to help the country change its way around sanctions. Russia has also succumbed to the fact that prompting its resolution to promote Russia’s digital ruble in foreign trade is important.

The regulator has made it clear that the country is not in any talks for domestic payment to be done utilizing crypto. The regulator has also cast doubts on the legalization of private digital currencies.

The CEO of Indefibank has said that according to Russian law, the establishment of a DAO was not required to issue ERC20 tokens to be coordinated with the central bank. The Central bank nonetheless has the power to object to the usage of the word ‘ruble’. According to sources, this may prompt the company in changing the name of the crypto.

Source- Blockchain Africa

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