VLADIMIR Putin has given the green light for Russia to have it’s own cryptocurrency - dubbed the CryptoRuble.
The move will propel Russia into the digital currency market and pit it against rival Bitcoin.
Officials said that once it is launched in a few weeks time, all other cryptocurrencies will be banned in the country.
Russia’s Communications Minister Nikolay Nikiforov said the Government also plans to fully regulate the Cryptoruble.
He told Russia Today: “I am so confident to declare that we will run CryptoRuble just for one simple reason: if we don’t, our neighbours in the Eurasian Economic Community will do it in a couple of months.
“When buying and selling a CryptoRuble, the rate will be 13 percent from the earned difference.
“If the owner cannot explain the reason for the appearance of his CryptoRubles, when converting them into Russian rubles, the tax for him will be 13 percent of the total.”
Russian officials said the Cryptoruble will be taxed and the tax will be applied to any appreciation in value that occurs.
The new currency will use Russian designed encryption in a bid for it to remain traceable.
And Mr Putin already has plans to make the currency international.
Russia's Deputy Minister of Economic Development Oleg Fomichev, said the national digital currency will be moved to international markets as there was no point that it remained within Russia.
He said: “This mustn’t be a private currency, but the one, which is issued by the state, controlled by the state and enable to provide circulation of digital money in light of the digital economy.”
The Russian president had recently been extremely critical of bitcoins - one of the most popular cryptocurrencies on the market.
At a meeting with financial leaders in Sochi last week, he blasted it for being “risky and used for crime.”
He said: “The use of cryptocurrencies bears serious risks" citing money laundering, tax evasion and funding for terrorism.”
He then called for a “regulatory environment” to ensure that the digital currencies are used fairly.
Bitcoin, the most well-known virtual currency, emerged in mid-2010.
It last traded at around (£3649) $4,807, up from its initial price of less than $1.
Mr Putin's calls for more regulation sent the price of bitcoin soaring.