Bank of Russia Steps Up Efforts to Issue Digital Ruble Due to Sanctions
The Central Bank of Russia (CBR) has accelerated the development of its digital ruble in response to Western sanctions. The monetary authority now intends to pilot transactions with the new version of the national fiat in early 2023 instead of 2024, as originally planned. CBR to Launch Transactions, Smart Contracts With Digital Ruble as Early as Next Year
Sanctions imposed over Moscow’s invasion of Ukraine have convinced the Bank of Russia to speed up the development of the digital version of the ruble, the Russian-language edition of Forbes reported, quoting CBR’s First Deputy Chairman Olga Skorobogatova. She revealed this during a meeting organized by the Association of Banks of Russia.
The high-ranking official remarked that Russia’s central bank had initially scheduled the digital ruble pilot with real transactions and users for 2024 but it has been decided to launch the project in April 2023. At the same time, the regulator also wants to start implementing smart contracts based on the digital ruble infrastructure.
Last spring, the Central Bank of Russia announced that the digital ruble’s prototype will be ready by the end of 2021 and devoted 2022 to trials with the participation of commercial banks. It started testing the platform in February of this year and announced the first successful transfers between individual wallets later that month.
The users were able to open digital ruble wallets through mobile apps, exchange regular electronic money from their bank accounts for digital rubles, and then transfer the coins between themselves, the CBR detailed. At the time, Skorobogatova assured that the digital currency transactions will be free of charge for all Russians and available in every region of the country.
A dozen Russian banks have so far applied to join the pilot group for the project and three of them have already connected their systems to the central bank digital currency (CBDC) platform. Two of the financial institutions have successfully completed a full cycle of digital ruble transfers between clients, the CBR revealed in its announcement.
Bank of Russia started testing the digital ruble amid disagreements with the Ministry of Finance over the future of cryptocurrencies in Russia. While the ministry wants them legalized and regulated, the monetary authority proposed a blanket ban on crypto-related activities. Discussions on the matter continue in Moscow but the central bank maintains its hardline stance, insisting the legalization of their circulation brings risks for the country’s financial stability and its citizens.
Forbes quotes Fitch analysts who expect the CBR to continue to advocate a prohibition of decentralized cryptocurrencies in order to make room for the development of its own digital currency. They also suggest that the emergence of a digital ruble could lead to an outflow of funds from deposits in the banking system, increased competition in the financial market, and rising interest rates. Tags in this story Bank of Russia, CBDC, CBR, Central Bank, Crypto, Cryptocurrencies, Cryptocurrency, Digital Currency, digital ruble, invasion, pilot, pilot project, Regulation, Regulations, Russia, russian, Sanctions, Testing, trials, Ukraine, War
Do you think Bank of Russia will manage to issue the digital ruble by April 2023? Tell us in the comments section below. Lubomir Tassev
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. While Stocks Rebound, Analysts Discuss Bitcoin"s Decoupling, Gold Markets Remain "Under Pressure" FINANCE | 2 days ago Wework Co-Founder Adam Neumann"s Crypto Project Secures $70M, Funding Round Led by A16z FINANCE | 4 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSequel to Iconic RPG Ni No Kuni to Feature NFT Integration and Play-to-Earn Mechanics Next articleChinese Crypto Regulations Force NFT Gaming App Stepn to Block Mainland Users Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments