Russian payment company QIWI wants to develop digital currency, government officials say it is illegal

September 17, according to Russian media Kommersant and Pravda, Moscow payment company QIWI is developing a virtual currency similar to Bitcoin, saying it will be a virtualized ruble. The company's CEO Sergei Solonin said in an interview with Kommersant that the concept could be deployed as early as next year.

However, a Russian government official has already spoken out against the payments company’s plans.

According to Russian state-owned news station TASS, Russia’s financial ombudsman Pavel Medvedev dismissed the concept as a violation of national law, saying:

"This is absolutely illegal and this rogue technology is absolutely inappropriate. The constitution has already stipulated who has the right to issue currency in Russia, and it is the central bank. The only currency in Russia is the ruble."

According to the financial statements released by QIWI in March this year, the company processed payments worth $11.5 billion in 2014, with an adjusted net income of $157.1 million.

The news comes at a time when Bitcoin and digital currencies are facing significant resistance in Russia. Earlier, Russian President Vladimir Putin spoke about the fundamental problems of widespread adoption of electronic currencies, including Bitcoin.

Although QIWI hopes to launch the digital currency in 2016, Solonin said that much will depend on the response of Russian authorities, and that the harsh criticism from Financial Ombudsman Dmitry Medvedev is not good news for the company.

Notably, Solonin also revealed that the company is currently developing a user identification system that will complement digital currency.

QIWI did not immediately respond to a request for comment from a CoinDesk reporter.

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