Russia’s State Duma Financial Committee Ponders Central Bank-Backed Stablecoin Pegged to Ruble

Russia’s State Duma Committee on Financial Markets chairman Anatoly Aksakov recently discussed that there is ongoing consideration of launching a state-backed cryptocurrency. The currency would be pegged to the Russian ruble.

Aksakov spoke at a press conference related to the household debt load and stated that he is confident that the government will support a cryptocurrency, but a “ruble-pegged cryptocurrency.”

He continued to describe a model to create the stablecoin and the cryptocurrency requires  a certain amount be deposited in a bank to ensure backing. Thereafter, the banking entity would be able to issue crypto assets with blockchain technology.

Mskagency, a state-supported news outlet, Aksakov clarified that the cryptocurrency would be issued by the country’s central bank because it is supported by fiat. Aksakov also noted that issuing crypto-money is “promising.”

In November, Aksakov seemed to have a different view of cryptocurrencies in general. He had claimed that BTH and ETH face a “bleak future” because they have no backing. He continued that for that reason, Russia drafted a law “On Digital Financial Assets” and therein, it eliminated a definition for crypto mining.

Askakov’s position is not new. In early 2018, the Russian Association of Cryptocurrency and Blockchain had claimed that the country intends to launch a stablecoin sometime in 2019. Interestingly enough, an advisor to the president noted that the matter is at a standstill, but that there are tools that may provide for “very fast” cryptocurrency issuance.