With a digital revolution fervently underway, countries worldwide are exploring their own Central Bank Digital Currency (CBDC) initiatives. Following cues from Russia, Belarus too is set to roll out a digital variant of the Belarusian ruble, hinting at its play in cross-border payments. The National Bank of the Republic of Belarus (NBRB) considers this launch as one of its landmark projects in recent years.
The NRBR’s Board Deputy Chairman, Dmitry Kalechits, stated that the introduction of the digitial Belarusian ruble held immense potential at the cross-border level. This reflects Russia’s sentiments expressed last month, suggesting potential compatibility of Russia’s digital ruble with China’s digital yuan and other global CBDCs. Kalechits elucidates the bank’s preparedness with the CBDC’s definition, envisaged as “a legal tender that performs all the functions of money.”
The CBDC, viewed as having equal value to cash versions of the Belarusian ruble, will be issued by the central bank. However, while the bank holds an assertive tone towards the digital ruble, the initiative’s feasibility remains to be fully established, with the debate inclusion of banks and individuals in a pilot CBDC “experiment.”
Bank Governor Pavel Kallaur conveyed the institution’s ambivalence as it still needs to “decide on the feasibility” of a digital Belarusian ruble. Despite declaring plans to initiate a CBDC experiment, Kallaur stated that presidential approval was vital, and the final decision to be made at the state head level.
Interestingly, Belarus’s approach towards the CBDC softly mirrors Moscow’s law – designating settlements with digital ruble as non-cash payments. With Russia’s CBDC trial in progress and Belarus willing to speed up its CBDC project, it seems a digital economic race may just have commenced.
Despite a noticeable difference in approach to cryptocurrency, both are eager to embrace the digital financial future. Where Russia seems inclined towards a possible cryptocoin prohibition reminiscent of China, Belarus has a welcoming stance towards crypto entities, offering incentives such as visa waivers and tax-free status until 2025 to foster this burgeoning sector.
Reports indicate Belarus President Alexander Lukashenko discussing the CBDC launch with Elvira Nabiullina, the crypto-skeptic Governor of the Russian Central Bank. While they intend to make an “appropriate decision” on a CBDC launch “by the year-end,” the National Bank of the Republic of Belarus seemingly tends to hasten the digital ruble’s introduction.
Notwithstanding the ambiguity and skepticism surrounding the implementation, the anticipation regarding the CBDC initiative and its intersection with global digital finance continue to surge. With Belarus aligning itself with Russia’s fortified effort, the race to dominate the digital space escalates.
Source: Cryptonews
