Russia made committee to make cryptorouble as its own cryptocurrency

Russia is considering ways to create 'cryptorouble' as its own national cryptocurrency. Moscow officials say President Vladimir Putin has commissioned a committee to build a crypto in which state-run Russian institutions will implement blockchain.

Russian presidential advisor Sergei Glazev told a recent government meeting on a cryptography as well as a useful means of payment to tackle international sanctions. A cryptocurrency will be a ruble, but its circulation will be limited in a certain way.

Tinuku Russia made committee to make cryptorouble as its own cryptocurrency

"This instrument is perfect for sensitive activities on behalf of the state.We can settle accounts with our colleagues around the world without any sanctions," Glazev said.

Putin has held several meetings with Ethereum founder, Vitalik Buterin, and ordered the cabinet to create a framework. Blockchain technology uses cryptography to allow multiple parties to share and update single and unchanging records of information without relying on central authority.

Some of the world's largest central banks have investigated the potential for blockchain, however, it is much more difficult to create state-backed crypto that will replace existing financing models such as raising capital for state banks or funding the defense sector.

Cryptocurrencies such as bitcoin augment anonymity, but blockchain technology as a cryptograph will not help Russian companies and individuals to break away from international sanctions or avoid detection by other countries.