The Central Bank of Russia will develop a prototype of its digital currency by the end of the year, deputy director of the bank’s payments department Olga Skorobogatov told RIA Novosti. In addition to creating a digital Ruble, the bank is also working on a blockchain platform for interbanking operations and an Ethereum-based platform to run smart contracts.
The Bank of Russia is currently designing a prototype for Russia’s first digital currency, which is set to be released by the end of the year. The monetary authority will be using blockchain technology for the “crypto ruble,” according to Bank of Russia’s First Deputy Governor Sergei Shvetsov, who spoke with local news agency TASS Thursday. He emphasized that the central bank will be taking a cautious approach to the digital currency’s development, adding that the bank will closely monitor the developments of similar crypto-projects at other institutions. Bloomberg reported that the central bank is also working on creating an infrastructure that would allow it to make payments between banks using blockchain technology, and is in the process of testing the
Not too long ago, Russia’s Deputy Finance Minister Alexei Moiseev claimed that the country would be making a move towards a digital version of its national currency, the Ruble (RUB). It appears that they’re following through on that promise, as the Bank of Russia recently announced that they would be moving forward with launching a prototype digital currency by the end of this year. The digital currency will apparently be based on the Ethereum network, and testing is expected to be performed by the end of 2019. The Bank of Russia has already developed a prototype of the digital currency, and they’ve already performed a live test on the Ethereum blockchain at their headquarters in Moscow.
The Central Bank of Russia (CBR) is preparing to issue a digital prototype of the national currency by the end of 2021, a senior official has confirmed. Transfers between individuals will be made for free with the digital ruble, which will have the same legal tender status as traditional Russian currency.
Bank of Russia will work with financial sector on digital ruble project
The monetary regulator of the Russian Federation, also known as the Bank of Russia, has been working on digitizing the ruble since mid-October, when its plan was announced to the public. The digital currency of the Central Bank of Russia (CBDC) is developed in the form of a unique digital code, which is stored in special electronic wallets. The currency will become a full-fledged means of payment that Russians will be able to use along with the ordinary ruble. The bank has already published an advisory report and presented the concept of the new digital ruble. We will make a prototype by the end of the year, Olga Skorobogatova, deputy governor of the central bank, stated this week according to RIA Novosti. Speaking at an open session of the Parliamentary Committee on Financial Markets, Skorobogatova noted that the Bank of Russia intends to work with the Russian financial sector to determine the various stages of project implementation.
Russian CBRC allows free P2P transactions
Russian politicians and regulators have been pondering the need for a national digital currency for several years, but developments in other countries have convinced the Moscow authorities to speed up the project. With decentralized cryptocurrencies rapidly gaining popularity, dozens of central banks are beginning to consider launching their own CBDCs. China is moving forward with its digital yuan, and the US Federal Reserve plans to unveil prototypes of a digital dollar in July. At the same time, the European Central Bank is deepening its analysis of how to digitise the European single currency, and in mid-2021 its Governing Council will decide whether to launch a digital euro project. According to a survey conducted last month, half of Russia’s residents are willing to switch to the digital ruble. In April, Skorobogatova said peer-to-peer (P2P) transfers between individuals would be free on the new network. Rates for payment of goods and services will be similar to the current rates of the Russian accelerated payment system (APS) developed by the Bank of Russia and the national payment card system. Commercial banks have not objected to the digital ruble project, the central bank said earlier this year. Quoted by Forklog, Alexei Zabotkin, deputy chairman of the Central Bank, said in January that Russia’s CBDC would serve as an alternative payment method that should reduce costs and lower the rates of payment services offered in the country. The Bank of Russia has also opened its regulatory sandbox to cryptocurrency projects, which were regulated with the adoption of the Law on Digital Financial Assets. What do you think about Russia’s plan to introduce a digital ruble and the CBDC in general? Share your thoughts on this topic in the comments section below.
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Bank, Bank of Russia, banks, CBRK, CBRF, cryptocurrencies, digital currency, digital ruble, launch, p2p, payments, plan, project, Russia, Russian Federation, Russians. Photo credit: Shutterstock, Pixabay, Wiki CommonsOn May 7, the head of Bank of Russia, Elvira Nabiullina, gave a speech at the St. Petersburg International Economic Forum, where she discussed the bank’s plans to create a digital Ruble prototype. The head of the central bank stated, “One of the most important directions for us now is the development of digital financial services. In the future, we plan to create a digital version of the national currency – the digital Ruble.”. Read more about cryptocurrency prices and let us know what you think.
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