Bitruble, a new Russian cryptocurrency, will be issued and circulated under control of Russia's Central Bank. It is expected to compete with Bitcoin and other cryptocurrencies.

Russia is the first country in the world to introduce a national cryptocurrency which would be strictly regulated by the national central bank, the Spanish newspaper El Mundo reported.

Earlier this week, Russian mobile payments company Qiwi announced it is developing a new "bitruble" cryptocurrency which is supposed to enter circulation in 2016.

According to the newspaper, Russia’s "unusual initiative" would result in the creation of a formidable rival to Bitcoin and other cryptocurrencies.

Bitruble will be very similar to Bitcoin, but unlike any other cryptocurrency, it will be regulated by the Russian Central Bank. The bank will strictly control the emission and circulation of Bitruble to prevent it from being used for illegal transactions.

Cryptocurrencies have no material form and global currency regulation does not apply. An unlimited number of anonymous sources could issue and use the currency.

Russian law bans the issue of any currency not approved by the Central Bank of Russia.

Currently, the Central Bank and Qiwi are in talks considering the issue of Bitruble. The sides are working to adjust the decentralized issue of the cryptocurrency to the Russian law.