Elvira Nabiullina named the terms for the preliminary launch of the digital ruble, named its advantages and risks, and revealed some of the technical details of the project.
The Bank of Russia may start the pilot testing for the digital ruble by December next year, stated the head of the central bank Elvira Nabiullina at a press conference following a board of directors meeting. The head of the institution added that the project organically fits into the upbuilding of the digital economy of the Russian Federation.
In her words, the digital ruble will not pursue the task of overtaking any type of money but will become the third form of usable state currency along with cash and non-cash. Citizens and businesses will be free to choose for what instance what type of ruble it will be more convenient for them to use. The role of the central bank will be to ensure the speed of converting one type of ruble into another.
Nabiullina explained that the digital ruble represents a unique innovation that will increase the transparency of financial transactions. There will be no anonymity in its use, as is the case with cash, but confidentiality is expected to be enhanced over time. Whether anyone else, besides the central bank, will be able to see what transactions are conducted will depend on the choice made within the framework of the digital ruble functioning model.
She also named the advantages of the digital ruble – a convenient electronic form and the ability to carry out payments offline even when there is no Internet access available. This nuance is a challenge for the central bank since there are no obvious existing solutions for this method yet.
