Bitcoin technology extends beyond Russian ban

     Russian payment giant QIWI plans to issue its own encrypted digital currency, and details of its new product have been exposed.

     Russian bitcoin news site ForkLog spoke with QIWI communications directors Konstantin Koltsov and Alexei Arkhipov about the “bitruble,” the project overseeing the project that made waves in Russian media circles after the company announced its plans last month.

     Russian government officials such as Financial Ombudsman Pavel Medvedev later condemned the plan, but the company has already taken action, applying for trademarks and implementing the concept of backing currency with goods.

     Koltsov and Arkhipov defended QIWI’s cryptocurrency initiative in the interview, noting that different market players have different opinions on the plan. They went on to say that QIWI believes the project will be able to reduce costs through payment processors and improve operational management.

The representative told ForkLog:

     “We believe that encryption is beyond the scope of any ban. QIWI is a major processor and loading operations has always been a pressing challenge for us. We would love to reduce backend costs – this is where our development really originated. We are interested in anything that can reduce costs and fees associated with servicing the end user.”

     According to two sources, QIWI has been “working on this encryption technology for a year, maybe longer” and it took about six months from the beginning to announce the digital cryptocurrency initiative.

     According to the company, the digital cryptocurrency could be launched as early as next year, but the decision ultimately depends on whether Russia will act on a proposed ban on currency alternatives, which could cover digital currencies.

     “Of course, we are ready to launch the project in 2016, but we have to wait for the central bank’s response. The central bank’s opinion and views on when and how the project will proceed are important,” the two said in an interview.

     QIWI representatives declined to provide details about the cryptocurrency project’s structure, stating:

     "We hope to keep it confidential for the time being. Our company is also among the main players in the market, and we do not want to have false interests in our designs."