With the Russian government preparing to launch its own cryptocurrency, speculation about its purpose and functionality is a hot topic among crypto supporters. With the information that is currently available, it appears that the "Cryptoruble" will not have many of the characteristics we expect from cryptocurrencies today, but will instead act as a digital version of the ruble. According to Russian news agency Tass, Alexei Moiseev, the Deputy Finance Minister of Russia, stated: "I think that when they talk about cryptorubles, they mix things up a bit, I think, it's more customary to call it a cyber-ruble".

Sergei Solonin, CEO of Qiwi group, sees the usefulness of the upcoming Russian digital currency in its ability to compete with cash: "If you do not give it the properties of cash and do not try to replace cash with the cryptoruble, then it's pointless”, he said in a meeting between Putin and top financial regulators.

The cryptoruble will act as legal tender in Russia, allowing citizens to pay personal income taxes more efficiently. It will not support mining, and will be issued in regulated amounts. Acting as a catalyst for the widespread acceptance of non-cash and electronic payments, Russia's proposed national cryptocurrency is bound to disappoint crypto supporters who value decentralization and anonymity. This should not come as a surprise, since the Russian government has expressed suspicion and dislike for existing cryptocurrencies multiple times.