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.
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.
The cryptoruble gives companies access to overseas settlements
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. It will have a 1:1 exchange rate against 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 cryptorubles.
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 Bank of Russia created the cryptoruble as a payment tool that is not related to the central bank’s digital currency ( CDC).
Cryptocurrencies help russian banks avoid sanctions
Russia’s central banking, which recently acknowledged that the country would require cryptocurrencies to circumvent Sanctions, has pledged to promote its digital ruble for foreign trade. It was also clear that discussions are not about domestic crypto payments. The regulator expressed doubts about the necessity to legalize private digital currency.
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. According to the report, the token’s developers have already created an MVP. The final product will be presented in October.
