October 22, 2020

Central Bank announced the development of a digital ruble

The Bank of Russia announced that it is studying the issue of issuing a digital ruble. The initiative has been discussed for several years, and there was always a lot of controversy around her.

On October 13, the Bank of Russia issued a report forpublic discussions, in which he announced that he would study the feasibility of issuing a digital ruble. It should become the third form of money and will deal with cash and non-cash rubles. The document emphasizes that the decision to issue the asset has not yet been made.

The regulator emphasizes that now it is necessary"Active study" of the issue from an economic and technological point of view. The Central Bank intends to evaluate the effectiveness of the digital ruble "in close contact with society, experts and financial market participants." The Bank of Russia accepts feedback on the report until December 31, 2020.

The Central Bank will be the issuer of the digital ruble. They will be able to pay both online and without access to the Internet and mobile communications. The digital ruble will be stored in a special electronic wallet. The regulator emphasizes that its digital currency is an equivalent form of the national currency. All three forms of the ruble will be equal and equivalent to each other.

The digital currency of the Central Bank can be issued using digital technologies. But, unlike cryptocurrencies, the digital ruble is an equivalent form of the national currency, the regulator emphasizes.

“The digital ruble is a commitmentthe central bank ... This is a fiat currency, that is, a currency whose stability is ensured by the state represented by the central bank, ”writes the Bank of Russia.

The development of the digital currency of the Central Bank will reducethe costs of settlements and increase financial accessibility, as well as open up opportunities for the development of financial services and instruments, the regulator is sure. He named four stages in the development of the digital ruble, the timing of which will be determined later:

  1. assessment of the possibilities and prospects for the introduction of the digital ruble;
    2. definition of its concept taking into account public consultations;
    3. piloting the digital ruble on a limited circle of users and developing its platform;
    4. making a decision on the feasibility and further steps to launch the digital ruble.