Digital ruble: myth or reality? (+ a couple of lines about today's Fed meeting).

Greetings to all, Friends!

 

I recently wrote a review article about the crypto ruble - I decided to share it with ourprofessional community.

(Anyway, the Fed is not going to touch the rate today, judging by the CMEgroup website:

, and the question with a new portion of printing bucks I think sooner (today) or later push through. Other thoughts in note *).

But we got distracted, it’s time for us to return to our nano-digital rubles:

Digital ruble: myth or reality?

At the moment, the modern financial systemis on the verge of transition to a qualitatively new stage of its development. In the context of a total pandemic, talk is increasingly heard about the need to switch from fiat money to cashless payments based on digital media. Almost all leading Central Banks unanimously declare the need to introduce digital money in the near future. The American Fed, the European Central Bank are developing a national cryptocurrency, seeing this as the future in the global financial system. Our Central Bank did not stand aside either.

Talk about the introduction of the digital ruble for a long timeflashed in the media and have a completely official basis. As proof - the adoption of the federal law on digital financial assets. It will enter into force starting in January 2021 and will regulate the relations arising from the issuance, accounting and circulation of digital financial assets, the cryptocurrency exchange operator, as well as the relations arising from the circulation of digital currency in the Russian Federation. The introduction of this law is the first step towards the creation of our own national cryptocurrency - the digital ruble. The Central Bank itself comments on this step as follows: “The emergence of new financial opportunities for citizens and businesses that meet the needs of the digital world increases the competitiveness of the entire economy as a whole. Therefore, the Bank of Russia, whose goals include the development of the national payment system, is exploring the possibilities of issuing the central bank's digital currency. "

What is this “beast” - the digital ruble?
“Digital ruble - an additional formRussian national currency, which will be issued by the Bank of Russia in digital form. The digital ruble combines the properties of cash and non-cash rubles.”

Of course, this process will not take place instantly, itwill take quite a long time and will require serious investments from the government. So already now Sberbank has estimated the banking sector's expenses for creating a cyber-resistant system for the digital ruble at least 20-25 billion rubles. The amount is not small and may well be increased in the process of creating a Russian cyber currency.

There is an active discussion about the role of banks increating digital currency. There are several models for introducing the digital ruble into circulation: one of them, in principle, does not imply the participation of banks in the system, in the other two they are intermediaries. Most likely, it will not do without the participation of the banking system - after all, someone has to monitor and control the process of introducing cryptocurrency. The role of the regulator in this case will go to the Central Bank.

The Central Bank has already announced the concept of issuing and circulating our cyber ruble:
“Non-cash money must become digital, andbanks and users should be able to program such rubles to pay for specific goods and services or, conversely, to prohibit a number of transactions.”

To summarize, it is worth noting - the processthe global transition from paper and non-cash money to digital media has already started and is only gaining momentum. Yes, some are faster, some are slower, but sooner or later we will enter the era of digital money, when the current methods of payment and savings will be remembered as history. This is a good reason to study this issue in detail right now and keep your finger on the pulse, and new money in a reliable digital wallet!

P.S. * Today's thoughts on the Fed and analysis of the SNP500, Dixie and currency major indices:

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