Russia is planning to launch its own cryptocurrency known as "CryptoRuble" that could be exchanged with rubles under the law of the Russian government, TechCrunch reported. CryptoRuble would be similar to Bitcoin, but would not share decentralized nature of other Digital Currency.

The Russian government would track all the transactions dealing with cryptocurrency. The 13 percent tax will be imposed on a holder of CryptoRuble if he/she failed to provide the sources of the currency came from, according to Newsweek.

Russian government will replace other digital currency

Vladimir Putin's administration called other foreign digital currencies (such as Bitcoin) illegitimate and decided to replace them with a blockchain this summer. The Russian government strictly said that CryptoRuble cannot be obtained illegally, it will be issued and tracked like other normal currency.

Minister of Communications and Mass Media of Russia Nikolai Nikiforov gave a reason why Russia decided to introduce CryptoRuble. He said, "If we do not, then after two months our neighbors in the EurAsEC [Eurasian Economic Community] will," according to CryptoCoinsNews.

Last week, the finance minister of Russia, Anton Siluanov said that Russia planned to start trading and mining cryptocurrency with the aim to protect people and investors by generating tax revenues.

He also said, "Cryptocurrencies are a fact of life."

Russian officials' statements

The new idea of the Russian government will help to improve the online economy of the country, not to rely on the third party for transaction purposes. In order to exchange cryptocurrency, a holder would be required to submit some documents regarding a transaction which would minimize money laundering and currency manipulation.

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A few days ago, Russian president Vladimir Putin said that the central bank of the country should ban the cryptocurrencies like Bitcoin because they were used for illegal and criminal activities. He also stated that the buyers of these currencies could be involved in unlawful activities.

Putin said that cryptocurrencies pose "serious risks" to the payment system of Russia, as these currencies have already become a medium of payment and investment in other countries. Russian authorities also planned to block all the websites where exchanges are done via cryptocurrencies, CryptoCoinsNews reported.