The developers are working on a “crypto-ruble” which, as they say, can improve Russians’ access to global exchanges and be used for cross-border payments. The Defi platform Indefibank, which is behind the project, claims that the token will be pegged to the domestic fiat but independent of a state-issued digital ruble.
Cryptoruble offers Russian companies another option for international settlements
Work is underway in Russia to launch a “tokenized cryptoruble” on the Ethereum blockchain, CEO of decentralized finance (defi) banking platform Indefibank, Sergey Mendeleev, announced at the Blockchain Life 2022 conference.
The plan is to issue the token via a decentralized smart contract with excess collateral, or based on the model used by the stablecoin DAI, the exec explained. Its exchange rate with the Russian ruble will be 1:1. Quoted by crypto news outlet Forklog, Mendeleev detailed:
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A user can either independently issue a cryptoruble by placing sufficient collateral in the form of stablecoins or cryptocurrency on the balance of a smart contract, or purchase it from an authorized exchanger for fiat.
The total offer will directly depend on the amount of the guarantee. Indefibank estimates the size of the potential retail market at 5-10 billion rubles (about $82-160 million).
Cryptoruble developers expect other members of the crypto community to join the initiative and see the project become an independent Decentralized Autonomous Organization (DAO) in the future. The cryptoruble will be a payment tool unrelated to the Central Bank Digital Currency (CBDC) created by the Bank of Russia.
Russia’s central bank, which recently agreed that the country would need cryptocurrencies to circumvent sanctions, has pledged to promote its digital ruble in foreign trade. The regulator also clarified that discussions were not about allowing domestic crypto payments and expressed doubts about the need to legalize private digital currencies.
The CEO of Indefibank noted that Russian law does not require the creation of a DAO and the issuance of ERC20 tokens to be coordinated with the central bank. However, if the monetary authority objects to the use of the word “ruble”, the company is ready to change the name of the crypto.
The crypto-ruble will make it easier for Russians to access global exchanges and settle with foreign partners, Mendeleev insisted. The token’s developers have already prepared an MVP, the report reveals, with the presentation of the final product expected in October.
Do you think that the Bank of Russia will allow the use of currencies such as cryptoruble in foreign trade agreements? Tell us in the comments section below.
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Ethereum-Based ‘Cryptoruble’ Token Under Development In Russia
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