The developers are working on a “cryptorruble” which, as they say, can improve Russian access to global trade and be used for cross-border payments. The Defi Indefibank platform, which is behind the project, says the token will be pegged to national fiat but independent of a state-issued digital ruble.
Cryptoruble offers Russian companies another option for international settlements
In Russia, work is underway to launch a “tokenized cryptoruble” on the Ethereum blockchain, announced the CEO of the decentralized finance (defi) banking platform Indefibank, Sergey Mendeleev during the Blockchain Life 2022 conference.
The plan is to issue the token through a decentralized smart contract with excess collateral, or based on the model employed by the DAI stablecoin, the executive explained. Its exchange rate with the Russian ruble will be 1: 1. Quoted by crypto news broadcaster Forklog, Mendeleev detailed:
A user can independently issue a cryptoruble by placing a sufficient guarantee in the form of a stablecoin or cryptocurrency on the balance of a smart contract, or by purchasing it from an authorized exchange for fiat.
The total supply will directly depend on the guarantee amount. Indefibank estimates the size of the potential market among private individuals between 5 and 10 billion rubles (approximately $ 82 – $ 160 million).
Cryptoruble developers expect other members of the cryptocurrency community to join the initiative and see the project become an independent decentralized standalone organization (DAO
Russia’s central bank, which recently decided the country would need cryptocurrencies to circumvent sanctions, has promised to promote its digital ruble in foreign trade. The regulator also made it clear that discussions are not about authorizing 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 a DAO and the issuance of ERC20 tokens to be coordinated with the central bank. However, if the monetary authority opposes the use of the word “ruble”, the company is ready to change the name of the cryptocurrency.
The cryptorube will make it easier for Russians to access global trade and settle with foreign partners, Mendeleev insisted. The token developers have already prepared a file MVPreveals the report, with the final product presentation scheduled for October.
Do you think the Bank of Russia will allow currencies such as the cryptorole to be used in foreign trade agreements? Tell us in the comments section below.
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