The Ministry of Finance named the pros and cons of the digital ruble

The digital currency of the Bank of Russia will reduce the number of settlements in dollars, but firstit is necessary to minimize risks.

The advent of the digital ruble will lower the costtransactions and the burden on banks, will expand cross-border payments, reduce dependence on the dollar and exposure to sanctions, are confident in the Ministry of Finance of the Russian Federation. The department attributed the lack of security, high volatility and the likelihood of being used for illegal purposes to the possible risks of the project, which should be leveled, Izvestia writes.

The emergence of a new currency of the Bank of Russia requires the creation of a payment infrastructure and new types of services.

Now the Ministry of Finance and the Central Bank are studying international experience in issuing and regulating digital currencies, including national ones. The department attributed to the possible advantages of using digital currencies:

• reducing the cost of transactions, as well as the burden on banks and payment systems;
• expanding opportunities for cross-border payments;
• reduced dependence on the dollar and, as a result, reduced exposure to sanctions from third countries.

The Ministry of Finance also listed a number of disadvantages of digital currencies that must be leveled:

• lack of security;
• high volatility;
• use for illegal purposes.

To create a dedicated payment infrastructureand new types of services in the department proposed to take the profile recommendations of the FATF as a basis. The final decision on the issue of the digital ruble has not yet been made.

On October 13, the Bank of Russia announced that it would study the issuethe expediency of issuing a digital ruble. It should become the third form of money and will deal with cash and non-cash rubles. The Central Bank intends to assess the effectiveness of the digital ruble and accepts feedback on the report until December 31, 2020.

Interest in participating in piloting the Central Bank project forBanks MKB, PSB, Zenit, Dom.RF and the Crimean RNKB have already expressed the issue of the digital ruble. If the new currency is adopted, Russians will be able to receive salaries and benefits in it. An analogue of a bank card will become a wallet for the Bank of Russia cryptocurrency; in order to accept it, shops will need to reconfigure their terminals.

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