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.

Last month, there were reports that suggested that the Central Bank of Russia was interested in the concept of national digital currencies. Deputy Chairman of the Bank of Russia Olga Skorobogatov had said, “According to the rules of the hybrid network, most likely, will develop national digital currency".

The news comes at a time when Russia is seeking to ban circulation of money surrogates, which will include cryptocurrencies such as bitcoin, in the country. CoinDesk reported last week that the bill prepared by Ministry of Finance targeting the creation and circulation of money surrogates has been temporarily withdrawn from consideration following negative feedback from the country’s Justice Ministry.