Indefibank announces development of Ethereum-based crypto-ruble

Russia has begun developing a tokenised crypto-ruble based on the Ethereum blockchain. This was announced at Blockchain Life 2022 by Indefibank CEO Sergey Mendeleev.

The emission of the crypto-ruble is carried out through a decentralised smart contract with over-collateralisation under the DAI model. The token’s value will be pegged to the national currency at a 1:1 ratio.

“The user can either issue the crypto-ruble themselves by placing sufficient collateral in the form of stablecoins or cryptocurrency on the smart contract’s balance, or purchase it at one of the authorised exchanges for fiat,” explained Mendeleev.

Total issuance will be directly linked to the amount of collateral. The Indefibank team pegs the current retail market at roughly 5-10 billion rubles.

Developers expect that in the future representatives of the crypto community will join the initiative to create the crypto-ruble. In the future, the project will become an independent DAO.

According to Mendeleev, Russian law does not require approval for creating a DAO and issuing ERC-20 tokens with the Bank of Russia. However, if the regulator has questions about using the word “ruble” in the name, Indefibank is ready to propose alternative naming options.

The crypto-ruble will be a standalone instrument for settlements, not linked to the central bank’s CBDC.

“A tokenised crypto-ruble will not only simplify Russian citizens’ access to international cryptocurrency exchanges, but also, subject to changes in the law, enable settlements with foreign counterparties via cryptocurrencies,” noted Mendeleev.

Currently, the developers have prepared MVP. The presentation of the finished product is planned for no later than October 2022.

The Bank of Russia presented its first report on the issuance of a digital ruble in October 2020.

The central bank announced the readiness of the platform prototype in late December 2021.

The pilot group for testing the digital ruble included 12 banks.

The start of real settlements as part of the digital ruble pilot is planned for 2023.

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