Payment services provider Qiwi PLC (NASDAQ:QIWI) plans to launch its own crypto currency, to be named Bitrubles. The country has previously banned the use and trade of virtual currencies such as Bitcoin, a law which, if violated, could also lead to hefty fines.
Sergei Solonin, CEO of the company, said Qiwi has already started designing the “bitruble” and the project may require several hundred million rubles.
A first of its kind, originating from Russia, cryptocurrency bitruble is being developed by Russian payments system company Qiwi, which reportedly claims to have the most number of payments terminals around the world, according to Russian daily Kommersant. Pavel Medvedev, Russia’s financial ombudsman, branded it “hooliganism” in an interview with radio station Govorit Moskva. Many countries including the US have allowed their use. Governor Elvira Nabiullina said the Central Bank would find a solution to enable its use, though she acknowledged the risks of illegal financial operations in virtual currencies, according to news agency Interfax. “I think that the Central Bank should study this practice very attentively and, if necessary, offer ways to govern and use such tools either via a law or regulations”. In association with this EMS creation, Bitcoin was banned in Ecuador. This will cut the costs of processing services and transactions of traditional currencies. Following a 50 percent drop in the value of the ruble past year , Russian Federation countered the currency’s fall by expressing its animosity towards digital monies, explaining that they can not be trusted due to usage in criminal and terrorist organizations.
However, Deputy Minister Moiseyev said on Wednesday the government was discussing a bill that would severely tighten the responsibility for the issue and circulation of alternative currencies in Russian Federation . A regional court in January banned five Bitcoin-related websites, but the ruling was later overturned.
Just a few days ago, Moscow-based Qiwi had introduced its plans to create a Bitcoin-like digital currency that will virtualize the Russian national currency Ruble. Dates of the cryptocurrency launch will depend on the regulator, he added. “That is why they can not launch the cryptocurrency without the regulator’s permit”, Stanislav Grigoryev, an advisor at Herbert Smith Freehills, told Kommersant.