The Russian Ministry of Finance (MinFin) believes that the creation of a Eurasian digital currency (EAEU), in turn, is inevitable because of US sanctions. Major Russian media agency Rambler reported MinFin's comments on Friday 21 December.
Reportedly, MinFin sees an opportunity to launch a digital currency supported by the EAEU countries by 2020 or 2021, as revealed by Deputy Finance Minister Alexei Moiseev. The Eurasian Union was established in 2014 and includes five member countries: Belarus, Kazakhstan, Russia, Armenia and Kyrgyzstan.
The announced digital money project will probably be implemented without the use of blockchain technology, said Moiseev, as reported by the Russian news agency TASS.
According to Moiseev, the single currency supported by the EAEU will be developed similarly to the European monetary unit (ECU), the unit of account used by the European community before being replaced by the euro (EUR) in the January 1999.
Launched in 1979, the ECU represented a combination of the currencies of the States of the European Community, with its rate based on the weighted average of the participating currencies.
As the article notes, the idea of a common EAEU digital currency is supported not only by participants in the economic union, but also by other unnamed countries that are the main trading partners of the EAEU countries.
MinFin's deputy minister of finance noted that the transition to the creation of the Eurasian currency is "inevitable" due to a growing number of sanctioned companies. Moiseev continued:
"We are hearing the promises of new impending sanctions, so we have to react by creating a secure international payment system that is not based on the US dollar."
In November 2018, the chairman of the Russian State Duma Commission for the financial markets revealed that a stablecoin provisionally supported by the state would be an encrypted equivalent of the Russian ruble.
Recently, Russian Deputy Prime Minister Maxim Akimov announced that the existing encryption project would not be changed, despite having been postponed to its first reading at the beginning of December.
The cryptography law, entitled "On digital financial resources", has raised some questions from some local legal entities regarding its effectiveness in space, since key terms such as "cryptocurrency" and "data mining" have been removed from the text .