Today, the Bank of Russia announced the possibility of issuing a digital form of the Russian national currency, the digital ruble. In fact, it published a report for public discussion of the issue.
«The Bank of Russia aims. Ensure that the monetary circulation system meets the changing needs of citizens and businesses. ‘
According to the Bank of Russia, the digital ruble would be an additional form of money, circulating on a par with the rubles in cash and not in cash. Also, it will be necessary to create an additional payment infrastructure, which will contribute to the further development and stability of the Russian payment system.
In a way, it could be used in electronic Wallets. Through mobile devices and other means.
Also, if the cash is issued in the form of banknotes, it would be in the form of a unique digital code. In effect, it would be stored in a special electronic wallet.
The report on the possible issuance of the digital ruble
Ultimately, the report indicates that the use of the digital ruble would increase the transparency of transactions. In addition, it would help reduce the risks of money laundering and terrorist financing.
Indeed, the Bank of Russia has not yet decided to issue a digital ruble. Certainly, the advisory report presents possible options and ways to implement such a solution. As well as the necessary functional requirements.
In this regard, the Bank of Russia considers it extremely important to discuss key aspects, advantages, possible risks, stages and times of this project with the financial sector, the community of experts. Likewise, with all interested parties.
Also, if the regulator launches the issuance of the digital ruble for offline transactions. The Bank of Russia will consider restricting the amounts and number of transactions.
Russian national currency in digital form
Basically, it is an additional form of the Russian national currency, which will be issued by the Bank of Russia in digital form. The digital ruble combines the properties of the cash ruble and non-monetary rubles.
As a fun fact, the digital ruble can be used offline. That is, in the absence of Internet access.
In the same way, this digital form will perform the three functions of money:
- A means of payment
- A measure of value
- A store of value
Advantages of the digital ruble:
- It can become a convenient additional means of payment.
- The coverage of the population with financial services will be increased. As a consequence, it will improve people’s quality of life.
- It will limit the risk of reallocation of funds to foreign digital currencies.
Stages of creation
The development of the digital ruble will take place in several stages. For its part, the project calendar will be determined by the authorities in the near future.
- Assessment of the possibilities and prospects of the introduction of the digital ruble.
- Definition of your concept. Taking into account public consultations.
- Putting the digital ruble to the test. For a limited time of users.
- Make a decision on the feasibility and additional steps for the launch of the digital ruble.
Finally, will the possible issuance of the digital ruble increase the stability of the country’s financial system? Leave us your opinion in the comment box.
I retire with this phrase by William Hazlitt: «The more we do, the more we can do«.