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The Central Bank of Russia Has Published An Official Document On The Digital Ruble

15 October 2020 18:30, UTC
The Central Bank of Russia Has Published An Official Document On The Digital Ruble
By Anna Martynova

According to a report from the Central Bank of the Russian Federation dated October 13, it became known that the government was still working on the issue of launching a digital ruble. It is known that at this stage the bank accepts feedback on the idea and concept until December 31, 2020. The resulting data will then be evaluated to launch a pilot project for the digital ruble.

The purpose of the digital ruble is to complement other forms of money, namely cash and bank accounts. This is not the first time the Russian Central Bank has considered the concept. Last summer, the head of the Bank of Russia Elvira NABIULLINA said that the bank would not issue its own digital currency in the foreseeable future, but would consider the issue. Now the actions of the Central Bank are becoming more specific.

The report also pays special attention to data protection and privacy. While it is not possible to use the Russian CBDC completely anonymously, the digital currency should guarantee greater anonymity. Data on transactions with the digital ruble will have limited information compared to existing payment systems. Banks should have access to information about who participated in the transaction, but not the purpose of the transaction. Users of the digital ruble will also undergo the “know your customer” (KYC) procedure at the Bank of Russia. The regulator also believes that the possible introduction of the digital ruble could create a period of instability for banks, as people start withdrawing funds from their accounts in order to buy digital rubles.

Image courtesy of Banks Today



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