"The bubble can burst at any moment"
Material posted: Publication date: 15-06-2017

What will the creation of a Russian cryptocurrency.

Russia has started to create its own cryptocurrency, the domestic counterpart of bitcoin. The functionality of the new digital money will be slightly cropped — users will have to forget about anonymity and mining. Releasing them will be a single centre, whose activities are subjected to strict regulation. "Ribbon.ru" to figure out who could be interested in a new financial instrument and as its occurrence will affect the process of legalization of other cryptocurrencies in Russia.

Mining in Russian

The first half of June was marked "Russian bitcoin". Several departments reported on progress of the implementation process, and legalization of the technology in Russia. So, during the St. Petersburg international economic forum the Chairman of the Central Bank Olga Skorobogatova reported that the regulator had begun work on the creation of a national digital currency. "To a virtual national currency, we'll get there, we have already started working," she said. Skorobogatova added that there is growing interest in such financial instruments. "I think that in the next two to three years, this topic is very actively developed, and we are studying all the pros and cons of the topic," — said the Deputy head of the Bank of Russia.

The financial monitoring Committee, which monitors the legality of economic operations in the country, supported the idea of establishing a Russian cryptocurrency. Deputy head of Department Pavel Livadny said that during the development of this tool Rosfinmonitoring will focus on the elimination of anonymity of users. "We understand how cryptocurrencies can be harmful for national economies and for the stability of financial systems, and we believe that, since all developed countries regulate this subject, it should be settled in our country," he said.

After Rosfinmonitoring, the Ministry of Finance made. On 9 June, Deputy Finance Minister Alexei Moiseyev said that the cryptocurrency in Russia can be qualified as "other property", that is, to give it more or less legal status. He added that during the operations with the domestic digital currency customers will be identified. He also stressed that when carrying out transactions with cryptocurrency, you must enter the customer identification and to protect the rights of consumers.

Thus, we are not talking about creating a full analogue of bitcoin. Domestic and non-anonymous crypto currency will be issued from a single center, which can be easily controlled. That is, from bitcoin will cut two key elements. On the other hand, the creation of cryptocurrencies involves the use of blockchain technology — today it is one of the most advanced technology that allows almost 100 percent to protect transactions within the system.

Bitcoin without the anonymity

In the story "Russian bitcoin" there are several points that require additional clarification. For example, when applying the Russian cryptocurrency? Who will take over its release? How its appearance will affect the exchange rate of bitcoin (the status of "other property" implies some legalization of cryptocurrencies in General on the territory of Russia, and any step towards the legalisation usually leads to a jump of the course the most popular of digital currencies; the latter case is the recognition by Japan of bitcoin as means of payment). "Ribbon.ru" has addressed these questions to the experts.

Oleg Yakushev, the expert of investment company "Zerich capital Management":
"Rosfinmonitoring, the Ministry of Finance and the Central Bank in 2016 discussed with representatives of the banking community the possibility of introducing a national currency. According to Pavel Livadny, the concept of the project since then has not changed — the issue of cryptocurrencies will be the licensed activities.

Cryptocurrencies (existing or newly created) will produce any systemically important Bank or Central Bank, and the sites of exchange of cryptocurrency for Fiat currency will be under state control — the buyer and the seller will have to pass the procedure of identification.

Thus, in addition to the refusal of anonymity, we are talking about the refusal of decentralization (absence of a single emission center), and also about refusal from the lack of oversight by government regulators — that is, from all three of the basic principles underlying the cryptocurrency as such. So is the national cryptocurrency economy gets another version of the classic electronic money — something like WebMoney, PayPal or EasyPay.

Refusing to recognize the cryptocurrency actually a foreign currency monetary asset or unit of account (at least at this stage) is not so much a principled position as palliative. This approach will allow you to enter existing cryptocurrencies in economic turnover, in accordance with the provisions of the Civil code, but avoid the introduction of foreign exchange controls.

In different countries the attitude towards cryptocurrencies, primarily bitcoin, much different. Somewhere he is recognized as a commodity or investment asset, somewhere- as a settlement currency, or virtual currency. The status of cryptocurrencies can change: for example 1 April 2017, Japan has recognized bitcoin as legal tender.

The spread of bitcoin depends on the willingness of specific companies (e.g. providers) to adopt it as a means of payment, and the turnover in a specific region is determined by the national legislation.

Today the volume of transactions with cryptocurrencies in Russia is minimal, so the Finance Ministry and CBR have enough time to consider various options for legalization".

Stanislav Vaneev, the General Director of the company Grand Capital:

"If we are talking about creating a national cryptocurrency, then it can't be anonymous because it is in direct conflict with the current legislation, for example in the field of combating money laundering and the financing of terrorism. But this currency will be reliable, provided by the state. If we want anonymity, then the bitcoin can be public.

The Finance Ministry justified its proposal by the need to avoid foreign exchange controls for cryptocurrency, in this context, the category of "other property" looks the most logical. In the US, for example, cryptocurrencies from the point of view of taxation are capital assets, that is, fall into the broad category that covers nearly all non-current assets: from real estate to intellectual property.

This is unlikely to have any global impact on bitcoins. Russia is too small a market for cryptocurrencies. More of the same of bitcoin is the policy of the PRC, where the main "farm", generating cryptocurrencies.

I think, when the Central Bank talks about creating a cryptocurrency he has in mind not the creation of a new currency and a new way of doing the calculations in rubles. The emergence of this method will relieve pressure on the traditional banking network and significantly reduce the cost of one operation. Such cryptocurrencies are big prospects. With proper technical and legal implementation, the number of transactions in such a system a few years can become more than traditional Bank transfers".

Bogdan Zvarich, an analyst of group of companies "Finam":

"In my opinion, bitcoins have no special advantages over the classic currency. At the same time, bitcoin carry significant risks. So, now we see a bubble that could burst at any time, and bring people invest in bitcoins, very large losses. As a result, players need to be very careful when buying this currency.

As for the issue of cryptocurrencies in Russia, it will have wide popularity in the near future. Here will be unaffected by the conservatism of the population, which is wary of such financial innovations. In this regard, I do not expect a significant impact of creating a national cryptocurrency on the bitcoin's price".

Prepared Marat Seleznyov

Source: https://lenta.ru/articles/2017/06/13/ruscripto/

Tags: financial center , finances , bitcoin