Russia has decided to begin work on a new national digital currency, the Bit-ruble, that will be managed and overseen by the state central banking system, according to late evening reports out of El Mundo in Spain.
Russia will work with Qiwi to build national digital currency system
As Cointelegraph reported earlier this week, Qiwi was planning on building a privately-run crypto-currency for the Russian market. This was met with a very negative response by the Russian Ombudsman, Pavel Medvedev.
“It’s absolutely illegal, such technical hooliganism absolutely inappropriate. The Constitution says who has the right to Russia to issue money; it is the (Russian) central bank. The only currency in Russia is the ruble. The rest of the money is illegal, and this kind of disgrace (would be) a criminal offense.”
It appears that Qiwi and the Russian central banking system have agreed to work together on this digital currency initiative that will take months to formalize. Many details need to be hashed out, including adjusting any laws governing digital currency use, the currency exchange rates with the fiat Ruble, and how to fund this operation, the cost of which may run into the hundreds of millions of Rubles.