The introduction of a digital ruble will be one of Russia’s top digitization priorities this decade, as confirmed by the country’s financial market development strategy. The document claims that issuing a digital national Fiat will help the central bank prevent Russians from using “money surrogates,” as officials previously called cryptocurrencies.
Bank of Russia will issue digital rubles by 2030, according to the Financial Market Development Plan
The strategy for developing the financial market of the Russian Federation by 2030 was published this week by the Ministry of Finance. The plan is open for public discussion between September 14th and October 13th, 2021, according to a notice published by the State Automated Information System.
The strategy defines the introduction of a digital version of the Russian ruble as one of the priority tasks in the field of digitization, as reported by the crypto news agency Bits.media. The authors have indicated that the digital ruble will be the third form of money from the Central Bank of Russia (CBR).
The Central Bank’s digital currency (CBDC) is designed to facilitate the development of the Russian payment infrastructure and the introduction of innovative financial instruments. The digital ruble is also intended to increase the availability of banking services for private and corporate customers while reducing transaction costs.
Moscow hopes the digital ruble will enable it to “continue to discourage the use of currency surrogates,” which are prohibited under current law. Russian regulators previously used this term to describe cryptocurrencies. The Ministry of Finance insists that money surrogates pose a threat to money laundering and terrorist financing, pose risks to Russian citizens, while also hindering macroeconomic policies.
In addition, Russia plans to continue developing its Mir payment system, the country’s Faster Payment System, and the country’s financial messaging system. Bank of Russia will implement Suptech and Regtech solutions to analyze transactions and monitor regulatory compliance in order to manage risks more effectively and ensure information security. The document states:
In connection with the introduction of the digital ruble and the development of payment instruments, the Government of the Russian Federation and the Bank of Russia will continue to speak out against the use of currency surrogates.
In order to ensure consumer protection, Russia will take into account the international standards of the Committee on Payments and Market Infrastructure, the International Organization of Securities Commissions and the Financial Stability Board, the strategy emphasizes. The digital ruble should enable authorities to better deal with crisis and inflation while maintaining the stability of the Russian economy.
The release of the financial markets strategy comes after the Bank for International Settlements (BIS) recently urged central banks to rapidly develop their CBDCs to compete with payment initiatives in the private sector. At a financial forum in Slovenia, Benoît Cœuré, who heads the BIS Innovation Hub, warned that the monetary authorities should accelerate their work on state-issued digital currencies because “stablecoins and cryptoassets are already there”.
Speaking to reporters last week, President Vladimir Putin’s press secretary Dmitry Peskov stated that the Russian Federation was not ready to recognize Bitcoin and insisted that such a move would bring no benefit to the country. In May, Bank of Russia Deputy Governor Olga Skorobogatova announced that the CBR was preparing to unveil a digital ruble prototype by the end of 2021.
Do you think the digital ruble will limit the use of cryptocurrencies in Russia? Do share your thoughts on the matter in the comments below.
Tags in this story
Bank of Russia, CBDC, Central Bank, Crypto, Cryptocurrencies, Cryptocurrency, Development, Digital Currency, Digital Ruble, Ministry of Finance, Government, Mir, Money Surrogates, Payment System, Plan, Russia, Russian, Strategy &
Photo credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: 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 approval of any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.