Russian authorities consider creating national cryptocurrency - Polidicks

[quote]According to latest reports, the Russian Ministry of Finance is holding discussions with regulators and banks to come up with the country’s own state-controlled digital currency. Pavel Livadny, a deputy director of the Federal Financial Monitoring Service, told Kommersant that the talks are currently focusing on the general principle of using such a cryptocurrency, not on the draft law, CoinFox reported. The key difference between Russia’s own cryptocurrency and bitcoin will be that the former will have centralized issuance. Livadny went on to suggest that the issuance of the new cryptocurrency will only be authorized to licensed financial entities. In addition, special regulated exchange markets are being considered for allowing buying and selling of the cryptocurrency for rubles or other fiat currencies. Not surprisingly, all exchange operations will require compulsory person identification. These measures aim to minimize anonymous transactions with respect to the cryptocurrency. Russian authorities have often spoken about the dangers of anonymous digital currency transactions, which includes their use for illegal purposes such as money laundering and terrorism financing.[/quote] source: [url]http://www.econotimes.com/Russian-authorities-consider-creating-national-cryptocurrency-214190[/url] another source: [url]https://www.rt.com/business/344572-russia-national-cryptocurrency-launch/[/url]

Didn't Israel already do this?

Isn't one of the points of a cryptocurrency the fact that it ISN'T centralized?

Alright, I have questions. What happen if someone gets a hold of the mining program for Russia money? Suddenly you've got the equivalent of someone printing their own money.

[QUOTE=Sims_doc;50410024]Alright, I have questions. What happen if someone gets a hold of the mining program for Russia money? Suddenly you've got the equivalent of someone printing their own money.[/QUOTE] They'll make a system where you can mine russiacoins only on a verified computer. They're not stupid

Russia already has a cryptocurrency: It's called the Ruble. It is virtually worthless, but they optimistically use it in the economy.

[QUOTE=gufu;50410208]Russia already has a cryptocurrency: It's called the Ruble. It is virtually worthless, but they optimistically use it in the economy.[/QUOTE] Money bears no intrinsic value, only abstract value, believe it or not. This could be said about any currency in this world. The thing that gives money its worth is what you can get with it.

How would a crypto currency work when there a power outage?

So Russia's basically floating the idea of another currency because theirs is nearly worthless and this proposed one will more than likely have some government backdoor control so they can just reallocate funds whenever they want for their own purposes

[QUOTE=NeverGoWest;50410246]Money bears no intrinsic value, only abstract value, believe it or not. This could be said about any currency in this world. The thing that gives money is what you can get with it.[/QUOTE] Wow, hold it there buddy. you dont want an economist to be summoned and start mumbling on about the theory of money.... Believe me. Things get nasty.