CryptoRuble Can Help Russia Evade Western Sanctions, According to Putin’s Economic Adviser

Government officials remain divided after President Putin’s economic adviser, Sergei Glazyev, stated that this digital currency can help ease the pressure of Western Sanctions.

According to the report published by the Financial Times on January 1, 2018, the CryptoRuble could be used to get around the international sanctions imposed on Russia as it could help the government to settle accounts with the counterparts across the globe.

  • The Russian CryptoRuble is basically a government-issued digital currency that is accepted as a legal tender but with restricted circulation.

The creation of its own cryptocurrency was not a surprise to many, given that the country has demonstrated an on-and-off support towards Bitcoin and other cryptocurrencies.

Not in the same boat

While President Putin may likely give the green light to this plan, other government officials are not as enthusiastic. Given that CryptoRuble was seen as one of the ways to tackle tax evasion in the country, using it to circumvent sanctions may prove to be ironic.

Among the officials who have been vocal about their disagreement with the issuance and use of CryptoRuble is the Deputy Governor of the Central Bank of Russia, Olga Skorobogatova.

During the government meeting on the Digital Currency Legislation, Skorobogatova and the Deputy Minister of Finance Alexey Moiseev opposed to the plan of issuing digital currency.

However, it can be recalled that in June 2017,  Skorobogatova sang a different tune during the St. Petersburg International Economic Forum.

Part of her statement includes:

“Regulators of all countries agree that it’s time to develop national cryptocurrencies, this is the future. Every country will decide on specific time frames. After our pilot projects, we will understand what system we could use in our case for our national currency.”