Developers are working on a “cryptoruble” that they say can be used for cross-border payments, improving Russian access to global exchanges. Defi platform Indefibank, which is behind the project, says the tokens will be anchored in the country’s fiat but independent of the digital rubles issued by the country.
Cryptoruble to give Russian companies another option for international payments
Work is underway in Russia to launch a “tokenized cryptoruble” on the Ethereum blockchain, Sergey Mendeleev, CEO of Indefibank, a decentralized financial (defi) banking platform, said at the Blockchain Life 2022 conference.
The plan is to issue tokens through decentralized smart contracts with overcollateralization or based on the model adopted by DAI stablecoin, the executive explained. The exchange rate with the Russian ruble will be 1:1. Mendeleev, quoted by crypto news outlet Forklog, elaborated.
Users can independently issue cryptorubles or purchase them from an exchange authorized for Fiat by placing sufficient collateral in the form of stablecoins or cryptocurrency on their smart contract balance. {Indefibank estimates the potential market size among individuals at 5-10 billion rubles (about $82-160 million).
cryptoruble developers hope that other members of the crypto community will join the initiative and that in the future the project will become an independent, decentralized, autonomous organization (DAO). cryptoruble is a central bank created by the Bank of Russia It will be a payment tool unrelated to digital currencies (CBDC
Russia’s central bank recently vowed to promote its digital ruble in foreign trade, agreeing that the country needs cryptocurrencies to avoid sanctions. Regulators also made clear that the debate is not about allowing domestic crypto payments and expressed doubts about the need to legalize private digital currencies.
Indefibank’s CEO noted that Russian law does not require the establishment of DAOs and the issuance of ERC20 tokens to be coordinated with the central bank. However, the company is ready to change the name of its crypto if the monetary authorities object to the use of the word “ruble.”
The crypto ruble will make it easier for Russians to access global exchanges and settle with foreign partners, Mendeleyev claimed. Token developers already haveMVPsready; MVPsare being prepared; and the MVPs
are being prepared for the first time in the future, Mendeleyev said. The report reveals that a presentation of the final product is scheduled for October.
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