A senior official confirmed that the Russian Central Bank (CBR) is preparing to release a digital prototype of the national fiat currency towards the end of 2021. Transfers between private individuals will be free with digital rubles, this particular digital ruble; It will have the same legal tender status as Russia’s traditional currency.
Bank to Work with Finance Sector in Digital Ruble Project
The Central Bank of Russia has been working to digitize the ruble since mid-October, when its plan was made public. The Russian Central Bank Digital Currency (CBDC) will be designed as a unique digital code stored in special electronic wallets. The coin will become a full-fledged payment tool that Russians can use in conjunction with the regular ruble.
The bank has already published an advisory report and presented the new digital rubles concept. CBR Deputy Director Olga Skorobogatova, this week; “We will make a prototype at the end of the year,” he said. Speaking at the open meeting of the Parliamentary Financial Markets Committee, Skorobogatova noted that the Central Bank of Russia will work with the Russian financial sector to identify the different stages of the project implementation.
Russia’s CBDC Will Facilitate Free P2P Transactions
Russian policymakers and regulators have been pondering the need for a national digital currency for years. However, developments in other countries caused the authorities in Moscow to rush in this regard. As decentralized cryptocurrencies quickly gained popularity, dozens of central banks began to consider options for launching their own CBDCs.
As China moves forward with the digital yuan, the US Federal Reserve now plans to announce digital dollar prototypes in July. Meanwhile, the European Central Bank is deepening its analysis of how to digitize the common European currency, and the Governing Council will decide whether to launch a digital euro project in mid-2021.
Russia is Ready for Digital Ruble!
According to a survey published last month, half of Russian residents feel ready to use digital rubles. In April, Skorobogatova announced that private peer-to-peer (P2P) transfers will be free on the new network. Payment commission for goods and services, developed by the Central Bank of Russia and the National Payment Card System; It will be similar to the current rates of Russia’s Fast Payment System (FPS).
The central bank stated earlier this year that commercial banks did not raise any objections to the planned digital ruble. CBR Deputy Director Alexei Zabotkin said in January, Forklog reported that the Russian CBDC will serve as an alternative payment method that is expected to lower the costs of payment services offered in the country and pay lower rates. The Bank of Russia has also opened the regulatory sandbox for projects related to cryptocurrencies regulated by the adoption of the “Digital Financial Assets” Law.