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- Russia’s digital fiat, which is still under development, poses a number of concerns that legislators want the central bank to thoroughly investigate
- Deputies are concerned that the new ruble, which is the third iteration of the Russian currency after cash and bank money, would enhance competition in the banking industry
- At the same time, the Duma committee anticipates that the digital ruble will enable quick, easy, and safe payments while lowering payment service costs
Russia’s digital fiat, which is still under development, poses a number of concerns that legislators want the central bank to thoroughly investigate. After debates on the project, members of the influential Financial Market Committee of the State Duma, the lower house of parliament, observed that the implementation of the digital ruble might provide a problem for the country’s financial industry.
The conclusion was reached in reaction to the Central Bank of Russia’s presentation of Main Directions of Monetary Policy Until 2024, crypto news source Forklog said this week. The document discusses the possibility of launching a national digital currency, as well as other areas of Moscow’s monetary policy.
Deputies are concerned that the new ruble, which is the third iteration of the Russian currency after cash and bank money, would enhance competition in the banking industry. Financial institutions’ profitability may suffer as a result, and the government’s role in the business may grow dramatically.
Furthermore, the introduction of a digital, programmable fiat brings with it new types of hazards, such as in the sphere of information security. The report’s authors encourage the Bank of Russia to investigate vulnerabilities to macroeconomic stability and the banking industry. They urge that the regulator establish reaction measures ahead of time in the event that these hazards occur.
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At the same time, the Duma committee anticipates that the digital ruble will enable quick, easy, and safe payments while lowering payment service costs. The study of the introduction of digital money is good, the conclusion states, and believes that it would also be interesting to examine the impact of the expansion of cryptocurrencies in global commerce.
With non-cash payment alternatives becoming more popular in Russia and cryptocurrencies becoming more popular, the CBR and other organisations have taken the mission of providing Russian residents with a government-controlled digital currency very seriously. To accommodate the central bank’s digital money, officials intend to change 13 Russian laws and rules.
The Bank of Russia launched a digital ruble trial group in June, with over a dozen banks and other institutions participating. In December 2021, the authority aims to finish the platform’s prototype and begin testing the CBDC in January 2022. Elvira Nabiullina, the bank’s CEO, has indicated that the digital ruble will provide Russians with what they want as a state-issued alternative to decentralised cryptocurrencies and stablecoins backed by foreign cash.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
