The Bank of Russia – the country’s central bank – will soon start issuing the digital ruble. It will become a supplement payment method, on a par with existing cash and non-cash money. This was stated by the Deputy Chairman of the Bank of Russia Alexei Zabotkin in an interview with Izvestia.
The Russian way
According to Zabotkin, the digital ruble, one of the long-awaited CBDCs, will use simultaneously distributed ledger technology and centralized technologies:
“In terms of technology, it will be a hybrid digital ruble platform created and controlled by the Bank of Russia. At the same time, banks and other financial intermediaries will be able to create and develop additional methods and services for working with the newly created digital ruble, that will ensure its close integration with current financial products and services. ”
Only the Central Bank could issue digital rubles. The role of financial intermediaries in this process has not yet been determined:
“The digital currency will be the obligation of the Central Bank. Interaction with financial market participants in the distribution of the digital ruble for citizens and legal entities will depend on the model that will eventually be chosen. ”
However, do not expect miracles – no anonymous digital wallets are planned to be created since they can be used for illegal operations.
Russia’s quest for competitiveness
The Bank of Russia announced the beginning of public consultations on the issue of the digital ruble in mid-October. It was said that the bank is looking into the possibility to create a national digital currency. As specified by the Central Bank, digital rubles will be assigned special codes that will be stored in electronic wallets. The use of such money will be possible with the help of smartphones and other carriers, even in the absence of the Internet and mobile communications.
Furthermore, the digital ruble is planned to be used on par with cash and non-cash rubles. It will be able to make payments fast, easy and secure. The innovation will increase the competitiveness of the domestic economy, the regulator believes.
