Bank of Russia: Digital ruble is not compulsory
Even though the use of the digital ruble remains voluntary, the Bank of Russia’s law on the CBDC is being criticized over its alleged lack of privacy rights.
Even though the use of the digital ruble remains voluntary, the Bank of Russia’s law on the CBDC is being criticized over its alleged lack of privacy rights.
The Russian central bank recently met with some of the country’s commercial banks to discuss the proposed digital ruble.
Reports disclosed that the bill had only managed to scale through the first reading in the State Duma, the lower house of parliament, but it may be operational in May.
Sony Bank is working with Belgian startup SettleMint on a proof-of-concept, with the stablecoin set to be used in other areas, including gaming and sports.
Under the newly signed law, the Bank of Russia is tasked with storing digital ruble assets and will be the principal operator of the digital ruble infrastructure.
Russia’s central bank intends on launching a digital ruble prototype this year, its deputy chairman has recently revealed.
Olga Skorobogatova, first deputy chairman of the CBR, said the time horizon for a fully fleshed out and functioning digital ruble is an estimated three years.
Although Russia has said the digital ruble will be optional, banks want that embedded in legislation as they say their customers are wary of the upcoming state-backed digital currency.
The CBDC bill, supporting the creation of a digital ruble pilot, amended certain parts of the Russian civil code and established the right of the central bank as the primary issuer of the CBDC.
As the U.S. fortifies its grip on the global financial system, Russia targets to give sanctions-hit countries an opportunity to carry out international business easily—by using CBDCs.
Russia’s central bank may roll out digital ruble early 2022. The project is focused on replacing other digital currencies in the country.
Successful applicants of the U.K.’s Digital Securities Sandbox will be able to provide securities depository and settlement services and operate a trading venue under the modified regulations.