CryptoRuble: How Stable Could Russian National Stablecoin Be?

Specifically, the official said that a state-backed stablecoin would be a complete equivalent to the Russian fiat ruble, but in a digital space.

Russian authorities have now ended up with this concept after years of contradicting statements, and still, a ruble-pegged stablecoin might not turn out stable in the end.

Long and complex history of national cryptocurrency in RussiaRussian national cryptocurrency was originally referred to as "Bitruble," but then the term "CryptoRuble" became more common in the media.

Thus, in May 2016, Russian newspaper Kommersant reported that local officials were discussing the concept of a national cryptocurrency that would "Minimize the amount of anonymous transactions," citing the Assistant Director at Russia's Federal Financial Monitoring Service, Pavel Livadniy.

The article argued that both the Ministry of Finance and the Central Bank of Russia were skeptical about issuing a national cryptocurrency.

A few weeks later in the same month, the Russian Association of Cryptocurrency and Blockchain announced that the CryptoRuble will be launched in the middle of 2019.

On Nov. 2, 2018, the chairman of Russia's State Duma Committee on Financial Markets, Anatoly Aksakov, said that his agency is considering the launch of state-backed cryptocurrency pegged to the Russian ruble.

The official expressed his confidence that the government will back such cryptocurrency, clarifying that "It will be a ruble-pegged cryptocurrency." The deputy also added that the implied coin will represent a blockchain-powered stablecoin pegged 1:1 to the ruble.

How stable might it be?Issuing a stablecoin that is pegged to the Russian ruble might seem somewhat questionable from an economic perspective, as the currency has not shown consistent growth, or even stability over the past years.

The CBR blamed the slide in the ruble's value on new U.S. sanctions introduced by the Congress over a chemical-weapon attack in Salisbury and reports on Russia's interference in the U.S. presidential elections in 2016.If a ruble-pegged cryptocurrency is given a green light from Russian authorities after a years-long exchange of contradicting comments, the "Cryptoruble" price could be doomed to go through unexpected, politics-driven price spikes.