The Finance Ministry has suggested Vladimir Putin to create a national cryptocurrency
Yet on 29 January the head of the Ministry of Finance of Russia Anton Siluanov has sent President Vladimir Putin a letter in which he said that the Agency has no objection to the establishment of a national cryptocurrency, but the Russian media found out about it just now.
The letter was addressed to the head of state in the course of execution of the order dated December 30, 2017 on the establishment of a national cryptocurrency.
The letter reads:
The Finance Ministry has no objection to the possible implementation of a private project to create a national cryptocurrency is subject to monitoring by financial authorities, as well as the lack of necessary investment for public funds.
The office drew attention of the head of state on a number of legal and technological constraints in the implementation of this project. In particular, Siluanov pointed out that in the system of bitcoin number of transactions is seven pieces per second, Ethereum — 20, and Visa payment system — 2000 transactions per second.
In addition, Siluanov said:
Attempt to use a national cryptocurrency as a means of attracting foreign investments into the national economy, apparently, faced with the problem of exchange for foreign currency.
Siluanov added that recently the Russian users face restrictions of access to foreign cryptocurrency exchanges. According to the Minister, in future we can expect and limitations of Russian crypto-currencies on international markets.
Also, according to him, in the sphere of military-technical cooperation, the use of calculations on distributed registries can carry a privacy-threatening operations. The Minister concluded:
Given the above, it appears that the establishment of a national cryptocurrency with a single emission center is impossible due to the technical characteristics of the "issue" of cryptocurrencies, based on the technology of distributed registries.
While the Russian authorities did not come to a consensus in the issue of the regulation of cryptocurrencies. The Bank of Russia repeatedly proposed to prohibit any circulation of digital currencies, citing the threat of their use in money laundering and other crimes.
The Ministry of Finance takes a different position, as reflected in the draft law "On digital of financial assets" which was published in January. Under the bill, citizens will be able to buy and sell crypto-currencies and token-using the trading platform, brokers, dealers and Forex dealers with special licenses. The Agency believes that the restrictions will lead to the formation of the shadow market of cryptocurrencies.