The developers are developing a “cryptorubble,” which they claim would boost Russians’ access to global markets and be utilised for cross-border payments. The project’s backer, DeFi platform Indfibank, claims the coin will be tethered to national fiat but independent of the state-issued digital ruble.
CryptoRuble will provide Russian businesses with a another choice for overseas settlements.
Sergei Mendeleev, CEO of decentralised finance (DeFi) banking company Indifbank, revealed during the Blockchain Life 2022 conference that work is ongoing in Russia to establish a “tokenized crypto ruble” on the Ethereum blockchain.
The CEO added that the objective is to issue tokens with extra collateral using decentralised smart contracts or using the DAI stablecoin approach. It will have a 1:1 exchange rate with the Russian ruble. Mendeleev was quoted by cryptocurrency news source Forklog as saying:
A user may either create a cryptoruble autonomously by depositing sufficient collateral in the form of stablecoins or cryptocurrencies on the balance of a smart contract, or acquire it for fiat through an approved exchanger.
The overall supply is directly proportional to the amount in the collateral. Indifibank private people’ potential market size is expected to be between 5 and 10 billion rubles (roughly $82 – $160 million).
The CryptoRuble creators anticipate that more members of the crypto community will join the endeavour, with the project eventually becoming an autonomous Decentralized Autonomous Organization (DAO). A crypto ruble will be a payment instrument distinct from the Bank of Russia’s central bank digital currency (CBDC).
Russia’s central bank, which recently decided that the country would need cryptocurrencies to avoid penalties, has pledged to promote the digital ruble in international commerce. The regulator further underlined that the debate is not about permitting domestic crypto payments and questioned the necessity to authorise private digital currencies.
According to the CEO of Indifibank, Russian legislation does not need the formation of a DAO or the issuing of ERC20 tokens in order to collaborate with the central bank. If the monetary authority objects to the usage of the term “ruble,” the firm is willing to modify the name of the cryptocurrency.
Mendeleev emphasised that CryptoRuble would make it simpler for Russians to access global markets and sign contracts with international partners. The source indicates that the token’s creators have already developed an MVP, with the final product’s presentation scheduled for October.