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The country’s financial market development strategy has confirmed that the launch of the digital ruble will be one of the priorities of Russia’s digitalization in this decade. The document stated that the issuance of digital national fiat currencies will help the central bank to prevent Russians from using “money agents,” because officials previously referred to them as cryptocurrencies.
The Russian Ministry of Finance this week released the “2030 Russian Federation Financial Market Development Strategy”. According to the notice issued by the National Automation Information System, the plan will be discussed publicly from September 14 to October 13, 2021.
As reported by Bits.media’s encrypted news media, the strategy defines the launch of the digital version of the Russian ruble as one of the priority tasks in the digital field. The author pointed out that the digital ruble will become the third currency issued by the Central Bank of Russia (CBR).
The Central Bank Digital Currency (CBDC) is expected to promote the development of Russia’s payment infrastructure and the introduction of innovative financial tools. The digital ruble should also increase the availability of banking services for private and corporate users, while reducing transaction costs.
Moscow hopes that the digital ruble will allow it to “continue to block the use of currency substitutes”, which is prohibited by current law. Russian regulators have previously used the term to describe cryptocurrencies. The Ministry of Finance insists that currency agents pose the threat of money laundering and terrorist financing, pose risks to Russian citizens, and impede macroeconomic policies.
In addition, Russia plans to continue to develop its Mir payment system, the country’s fast payment system and financial messaging system. Bank of Russia will implement Suptech and Regtech solutions to analyze transactions and monitor compliance to manage risks more effectively and ensure information security. The document states:
In the context of the introduction of the digital ruble and the development of payment instruments, the government of the Russian Federation and Russian banks will continue to oppose the use of currency substitutes.
The strategy emphasizes that to ensure consumer protection, Russia will consider the international standards set by the Payment and Market Infrastructure Commission, the International Organization of Securities Commissions, and the Financial Stability Board. The digital ruble should enable the authorities to better respond to crises and inflation while maintaining the stability of the Russian economy.
The financial market strategy was announced after the Bank for International Settlements (BIS) recently urged the central bank to rapidly develop its CBDC to compete with private sector payment plans. At a financial forum in Slovenia, Benoît Cœuré, the head of the BIS Innovation Center, warned that monetary authorities should speed up their work on nationally issued digital currencies because “stable coins and crypto assets already exist.”
Last week, President Vladimir Putin’s press secretary Dmitry Peskov stated in an interview with reporters that the Russian Federation is not yet ready to recognize Bitcoin, and insisted that this move will not bring anything to the country. benefit. In May of this year, Olga Skorobogatova, deputy governor of the Central Bank of Russia, announced that CBR is preparing to launch a digital ruble prototype before the end of 2021.
Do you think the digital ruble will restrict the use of cryptocurrencies in Russia? Share your thoughts on this topic in the comments section below.
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