Ethereum-Based ‘Cryptoruble’ Token Under Development in Russia

Developers are creating a "cryptoruble", which they claim will improve Russians' access and allow them to make cross-border payments. The project is being developed by Defi platform Indefibank. It will be tied to the national fiat, but not dependent from a digital ruble issued by the state.

Russian companies have another option for international settlements with Cryptoruble

Sergey Mendeleev (CEO of decentralized finance platform Indefibank) announced that work is underway in Russia to launch a tokenized cryptoruble on the Ethereum blockchain. This was revealed during the Blockchain Life 2022 conference.

According to the executive, the plan is to issue the token via a decentralized smart-contract with excess collateral or using the DAI stablecoin model. Its exchange rate will be 1:1 with the Russian ruble. Mendeleev was quoted by Forklog, a crypto news outlet.

An authorized exchanger can allow users to purchase fiat currency or issue their own cryptoruble.

The amount of collateral will directly affect the total supply. Indefibank has estimated that the potential market for private individuals is between 5-10 billion rubles (approximately $82 – $160 million).

Cryptoruble developers hope that other members of crypto community will join the initiative. They envision the project becoming an autonomous, decentralized autonomous organization (DAO), in the near future. The cryptoruble is a payment instrument that will not be tied to the Bank of Russia's central bank digital currency (CBDC).

Russia's central bank recently stated that cryptocurrencies were necessary to circumvent the sanctions. It pledged to promote its digital ruble for foreign trade. Also, the regulator made clear that discussions aren't about allowing domestic cryptocurrency payments and expressed doubts over the necessity to legalize private digital currencies.

The CEO of Indefibank noted that Russian law doesn't require the creation of a DAO or the issuance ERC20 tokens be coordinated with the central banking. The company will change the name of crypto if it is objected to by the monetary authorities.

Mendeleev stated that the cryptoruble will make it easier to settle with foreign partners and access global exchanges for Russians. According to the report, developers of the token have already created an MVP. The final product will be presented in October.

Are you positive that the Bank of Russia will allow cryptorubles to be used for foreign trade agreements? Leave your comments below.

By: Lubomir Tassev
Title: Ethereum-Based ‘Cryptoruble’ Token Under Development in Russia
Sourced From:
Published Date: Sun, 18 Sep 2022 07:30:12 +0000

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