Bank of Russia Starts Public Consultation to Issue Digital Ruble

The Bank of Russia released a consultation paper on the development of the digital ruble with the aim of a broad discussion of this issue.

October 13, 2020 | AtoZ Markets – The Russian financial mega-regulator, the Bank of Russia, is starting public consultations on the issue of the digital ruble. For the purpose of a broad discussion of this issue, the Bank of Russia publishes an advisory report. This was reported today by the press service of the department.

The Bank of Russia assesses the prospects for the digital ruble

According to representatives of the Central Bank, the use of digital financial technologies is expanding in Russia and in the world, and non-cash money is increasingly used in every day settlements. In these conditions, society creates a request to increase the speed, convenience, and safety of monetary settlements using modern technologies.

Many central banks are actively discussing the introduction of central bank digital currencies (CBDC). Responding to the changing needs of citizens and businesses, the Bank of Russia is assessing the possibilities and prospects for issuing the digital ruble. This work will go in close contact with society.

How Russians will benefit from using Digital Ruble

It is noted that the digital ruble is a digital form of the Russian national currency, which the Bank of Russia will issue in addition to the existing forms of money (cash and non-cash rubles). Citizens will have the opportunity to credit digital rubles to their electronic wallets and use them using mobile devices and other media, both online and in the absence of access to the Internet (that is, offline).

Citizens and enterprises, based on their needs, will be able to freely transfer money from one form to another – that is, from a digital ruble to cash or to a bank account and vice versa.

At the same time, it is necessary to develop special technologies that will make it possible to use the digital ruble in offline mode. Then the digital ruble will be able to combine the advantages of both cash and non-cash money.

Read also: Russian Central Bank Proposes New Crypto Guidance for Banks

The use of advanced technologies in the development of the digital ruble will help to reduce the costs of settlements and increase financial affordability, as well as give an impetus to the further improvement of payment technologies.

“All these aspects, along with the unconditional requirement to ensure information security, will be taken into account by the Bank of Russia in its further work on the digital ruble project, when choosing specific functional and technological solutions. The Central Bank considers it fundamentally important to discuss the key aspects, benefits, possible risks, stages and timing of the digital ruble project together with representatives of the financial sector, experts and all interested readers, ”reads today’s release.

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