Those who are strong advocates for Bitcoin and other cryptocurrencies know that one of the best features in these digital monies is the fact that they are decentralized and not under the control of both central banks, and sovereign governments. And it is this factor that has allowed individuals to use crptocurrencies as a means to get out of sovereign controlled fiat currencies and into perceived safe havens for their wealth.
But the biggest fear in the cruptocurrency community has always been the co-opting of the Blockchain by The Powers That Be to use the technology to create their own digital currencies which could then allow governments to outlaw the decentralized ones, and force individuals into using their own controlled ones.
To date regulations on cryptocurrencies has been far from standardized, with countries like the U.S. labeling them as securities (property), countries like Japan welcoming and legitimizing them as currencies, and countries like China imposing strict oversight on investors who buy and sell them. But now on June 2 one country has announced their intention to create a sovereign national cryptocurrency which changes the ballgame entirely for the crypto community.
The Central Bank of Russia has plans to introduce a national cryptocurrency of its design, according to Deputy Governor Olga Skorobogatova.
"Regulators of all countries have come to the conclusion that it is necessary to do a national virtual currency. This is the future. Each country will decide the issue of a specific time and maturity independently," said Skorobogatova, speaking at St. Petersburg International Economic Forum (SPIEF 2017).
Skorobogatova said testing of a national virtual currency has already taken place on the Masterchain and Hyperledger platforms.
She added that the details of the project could be revealed in two to three years.
While Russian officials have been divided on cryptocurrencies, the technology has been backed by the financial sector, most notably by Herman Gref the head of Russia’s largest lender Sberbank.