- Bank of Russia cited that a CBDC could work beside the current cash system
- Bank of Russia doesn’t have any on the advancement of a digital ruble
The increase of Central Bank Digital Currencies (CBDCs) apparently understands no bounds. This week the Bank of Russia attached its name to the expanding list of countries addressing a digital ruble, creating a lengthy report that marks the benefits, drawbacks, and implementation concerns of a CBDC. The data is nothing more than a preceding conversation opener. As such, no timeline is laid out, even though it would not be unusual if this story kickstarts a rapid development process of the digital ruble in the nation.
Digital Ruble May Adapt From Existing Systems
In the article advertised last Tuesday, the Bank of Russia said that it was “exploring the possibilities of issuing the central bank digital currency (CBDC) – the digital ruble“, indicating the technological advancements that have led to, “The emergence of new financial opportunities for citizens and businesses that meet the needs of the digital world.”
The bank says that a digital ruble “combines the properties of cash and non-cash rubles” and would serve as an “additional” form of currency for Russians. It reckons that a digital ruble would link the best bits of the existing payment systems – it would be quick and remotely convenient like online payments, but would also be able to be used offline like cash.
Progress Timeframe In Question
A digital ruble would “perform all three functions of money: a means of payment, a measure of value, and a store of value” according to the Bank of Russia statement, replying that such changes in this field will decrease the cost and friction of transactions, spur innovation in “retail payments and beyond“, and will “increase the stability of the country’s financial system.”
Talking about the timeframe, the Bank of Russia says that it has “not yet decided to issue a digital ruble.” Rather, they say that the statement directs essentially to inform on the topic and start a dialogue on the opportunity of a Russian CBDC, suggesting that, unlike China, Japan, and Korea, a Russian CBDC could be lightyears in the future.