Russian gun manufacturer Kalashnikov Group is ready Transition to digital currency settlement. The announcement came from the International Economic Forum in St. Petersburg. The Central Bank of Russia reiterated its intention to replace “dirty” and “contagious” banknotes with digital rubles currently under development.
Russia’s Kalashnikov worries about anticipation of adopting digital ruble
Russia’s leading gun manufacturer Kalashnikov Group wants to switch to digital currency settlement, the owner Alan Lushnikov said at the St. Petersburg International Economic Forum. The event is held every year in Russia’s second largest city. Government officials and business leaders from more than 100 countries gather to discuss ways to overcome economic barriers between their country and the Russian Federation. The TASS news agency quoted Lushnikov as saying:
What we expect the banking system to do is switch to a non-bank settlement system. Digital currency has always been talked about. This is what we desperately need.
Alan Lushnikov, who served as the Deputy Minister of Transportation, emphasized that the digital currency system will not be linked to the international banking information network SWIFT, nor will it be controlled by bankers. Russia has received Western sanctions for its annexation of Crimea and Moscow and its involvement in the conflict in Ukraine, and has been threatened by the European Union and the United States for disconnecting from the interbank payment system.
Dozens of central banks around the world are working on projects to issue national digital currencies, including central banks in China, the United States, and the Eurozone. The Bank of Russia is preparing to launch a prototype of the digital ruble before the end of 2021. Commenting on this matter, Olga Skorobogatova, deputy governor of the Central Bank of Russia, said in December that the development of central bank digital currencies (CBDC) may make traditional banking systems obsolete, such as SWIFT.
Central bank officials say digital currency will replace “dirty” paper money
According to Sergei Shvetsov, a colleague of Skorobogatova and first vice chairman of the Bank of Russia, as we know today, cash is a fading technology. The senior official stated at the St. Petersburg forum that within a few decades, paper currency will be considered insignificant and will eventually be replaced by digital currency. TASS quoted him as saying that given the ongoing Covid crisis, not only is cash “dirty”, it can also spread infection:
They say “dirty money”, but now it is also contagious. Of course, this is just an outdated technology.
Shvetsov pointed out that the coronavirus pandemic has led to abandonment of cash. In his view, even now banknotes are mostly used to serve “gray business”, or used when there is no alternative that allows non-cash payments.
“I think that one day, in 20 to 30 years, cash will be insignificant. The digital ruble should be replaced,” the deputy governor explained, emphasizing that the Bank of Russia has not yet made a final decision on the future of the project. Shvetsov pointed out that the speed of its development will depend on “technical preparation.”
What do you think of the central bank’s digital currency? Share your thoughts on this topic in the comments section below.
Image Source: Shutterstock, Pixabay, Wikimedia Commons
Disclaimer: This article is for reference only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. The company or the author shall not bear direct or indirect responsibility for any damage or loss caused or claimed to be caused by using or relying on any content, goods or services mentioned in this article.