It has been expected for weeks, but now it appears that Russia is taking a more proactive approach to creating its own digital currency. According to the head of the country’s central-bank, Russia appears to be moving closer to investing and creating their own form of digital currency, although that goal appears to be for another day according to the Chairwoman of the Central Bank, Elvira Nabiullina.
“Indeed, Central Bank Digital Currency cannot be immediately implemented, however many central banks, including Russia’s Central Bank, are studying such a possibility,” the Chairwoman recently explained at a conference in Skolkovo.
In May, the Central Bank reportedly supported an idea for the country to create a digital currency that was backed by gold. Nabiullina seems to embrace the idea of a cryptoruble, but found that it was more important for the country “to develop settlements in national (fiat) currencies.”
The head of the Central Bank has recognized that it is time to start examining the inevitability of the development of this currency. However, she recognizes that improved technology is essential if this is going to become a reality.
“If national currency that works in the entire country is concerned, this does not refer to any private assets, and certainly, this requires a technology that would ensure reliability and uninterrupted operations. These technologies should be mature, including blockchain technologies.”
It appears Russia is recognizing the inevitable. “Some countries have really become almost cashless, but in many countries cash is still popular. This is not because people want to carry out certain dubious operations. People often appreciate their privacy and anonymity. Certainly, the circulation of non-anonymous digital currencies implies that a society should be ready for this,” Nabiullina explained.
The Russian legislature, the Duma, has recently spent a considerable amount of time addressing cryptocurrency legislation. This new legislation is expected to reach the Central Bank within weeks. This comes just days after a Russian Supreme Court called upon the national government to begin regulating the crypto industry, rather than take any kind of measure to stand in the way of its development.
Currently, the Central Bank is still in the act of reviewing a proposal on how the cryptocurrency would be developed. While this seems to be an eventuality that many countries will have to face, there are still some obstacles. Most notably, how settlement systems will work across the Eurasian Economic Union to handle these currencies.
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