With the digital currency wave taking over the globe, Russia’s Central Bank is on its toes to introduce its digital ruble by 2025. The leading financial institutions of the country have expressed their keen interest in the Central Bank digital currency (CBDC), showing readiness for a more technologically advanced monetary system. Though it is believed that public access will only be allowed no earlier than 2025, a pervasive atmosphere of anticipation and urgency to fast-track the project prevails in Moscow.
The eagerness to launch a CBDC comes in the wake of US and EU-led sanctions that have substantially hindered Moscow’s trade in the US dollar. The Central Bank has turned towards the implementation of CBDC aiming to eliminate dollar trade in Russia altogether. Views on discussions about “cross-border CBDCs” being something in the distant future, have not deterred Russia’s focus on the possibility of BRICS stablecoin, and a trade-aiding gold-backed token with Iran.
The international crypto industry’s trendsetters, Russian and Iranian crypto frontrunners, have been seen stepping up their cooperation in the recent past. It is believed that plans on state-backed stablecoin might see the light of day by the time of the next BRICS summit coming up later this year in Sandton, Johannesburg.
While global powers like Beijing, are inclined towards keeping their CBDC within their national boundaries, Russia is eyeing the potential for cross-border payments systems in partnership with “friendly countries.” Banks like DOM.RF Bank, Rosbank, and Alfa-Bank, reiterated their readiness for the project, expressing excitement towards the digital ruble “prospect.” It is suggested that VTB, another major Russian bank, has started its preparation with a “limited circle of clients and employees” for the prototype coin usage.
Interestingly, Russian Prosecutor-General Igor Krasnov’s recent meeting with his Chinese counterpart stirred the co-operative spirits between the two nations. Krasnov expressed the “common interest” both nations share in streamlining their respective CBDC-related legal systems to keep criminals at bay. He lauded China for being one of the first countries introducing CBDC to protect their economy from the potentially disruptive influences of cryptocurrencies. In a rapidly transforming financial world, it is paramount to have a well-regulated and secure digital currency system.
In conclusion, amid the air of excitement and anticipation, experts urge for a cautious approach. Racing towards digitization should not compromise safety, nor should it render the traditional system redundant, as the transition phase is always a critical period deserving due diligence for seamless changeover.
Source: Cryptonews
