Elvira Nabinullina, the Governor of Russia’s Central Bank, recently spoke out. Russian state has announced plans to trial the digital currency of the central bank (CBDC). Also preparing as the digital ruble prototype.
A top official confirmed that the Central Bank of Russia will soon issue a digital version of the national decree. This is expected to happen before the year 2021. Digital ruble technology will use for financial transfers between individuals. This currency will have the same legal tender status and legality as traditional Russian currencies.
This shows the rapid progress made by developed countries. One is the financial industry, which desires to shift from traditional transactions to digital currency.
According to Reuters Tuesday report, the governor stated that Russia will launch a prototype digital ruble in the first half of next year. Nabiullina says that the country might not launch its digital currency until after the testing phase has been completed in 2022. The country will need to spend some time testing the prototype digital ruble. To determine if the country will launch its digital currency by its central bank next year or in the near future.
The view of the central bank governor on cryptocurrency seems to have changed over time. In the past, he believed there was no reason to introduce cryptocurrency in the country. However, he believes that blockchain technology has many benefits for a country.
Russia Starts to Promote a Free Transaction in P2P
Russia’s Regulator has long considered the necessity for a national currency. Moscow authorities are now rushing to move the project because of developments in other countries. Numerous central banks are looking at options for creating their own CBDCs, due to the increasing popularity of decentralized cryptocurrencies.
China has made significant progress in digital renminbi. The Fed will launch a prototype digital dollars in July. The European Central Bank continues to work on digitizing the European Common Currency. In mid-2021, the management committee of the European Central Bank will decide if it wants to launch the digital currency project.
According to a poll, half the Russian population wants to use digital currency. Skorobogatova, a Russian social media expert, announced in April that peer-to-peer (P2P), communication between individuals would be free on the network.
The Russian rapid payment system, current FPS Bank rates, and the development of national payment card systems will all use as the payment commission for goods/services.
The central bank said earlier in the year that commercial banks had no objections to plans for preparing digital ruble prototype. Forklog quoted Alexei Zabotkin (CBR Deputy Governor) as saying that Russian CBDC would make a good alternative Payment through ATM and QR Code method.
It is expected to lower the cost and quality of payment services offered by the country. The Bank of Russia has also opened a regulatory sandbox for cryptocurrency-related projects. Which are regulated through the “Digital Financial Assets Law.”
Russia Interest on the Digital Space
Russia is now starting to notice the growth of its digital economy. It’s been obvious that blockchain and cryptocurrency technology has had a profound impact on global payment systems and industries as well as the economies of other countries.
Russian Prime Minister Mikhail Mishustin proposed recently that the country’s tax laws change. To consider Bitcoin property in tax law to help crypto holders and foster the growth of the cryptocurrency market. The country has yet to decide whether it will launch a digital currency. They are still awaiting the outcome of some of these opinions, but they have not yet made a decision.
Russian Banks Want to Immediately Implement a Digital Ruble
The Russian Federation’s monetary regulatory body, also known as Bank of Russia (or the Bank of Russia). Has been trying to preparing a digital ruble prototype since the beginning of the year. -October. The Digital Currency of Russia’s Central Bank (CBDC). Which is unique and store in an electronic wallet.
The bank published a consultation document and proposed a new digital currency concept. CBR Deputy Governor Olga Skorobogatova announced this week that they will create a prototype before the end of the calendar year.