The Central Bank of Russia has just announced that it is planning to start testing out its "Digital Ruble" by early 2022. The digitized currency, similar to cryptocurrency, is said to enter trials 2022 before becoming official.
Central Bank of Russia
The governor of Russia's central bank, Elvira Nabiullina, has stated that the country will have its own prototype digital ruble in 2022. This will reportedly start out as a trial run before they decide whether or not officially release their very own digital currency, as per a report by Reuters.
At the same time, Russian lawmakers will reportedly start working on the legal adjustments needed to implement the said digital ruble plan and accommodate the upcoming Russian digital currency. Anatoly Aksakov, the head of the State Duma Committee on the Financial Market, noted that the legal modifications would start as soon as the central bank digital currency or CBDC trial is implemented, as per Izvestia.
Five Codes that Need to be Changed
According to the story by CoinTelegraph, there will be at least eight different federal laws and five codes that must be changed for the digital ruble to come to life. These include the Civil Code, Budgetary Code, Tax Code, Criminal Code, and also Administrative Code.
The new rules will reportedly address a number of themes, including the Central Bank of Russia's own authority, to establish the circulation for this new currency. This includes the acceptance of this currency as a means for citizens to make payments and more.
Trial of the Cryptocurrency
The trial will reportedly be conducted in a number of stages, as the report noted. During the initial stage, the CBR will then provide the digital currency. It was noted that the size of the pilot's whole project network would reportedly scale up and start with 12 banks. Huobi has just announced its move to Gibraltar amidst China's cryptocurrency crackdown showing just how much influence the government's take on cryptocurrency could make.
The CBR has also established a group of different financial firms to examine its own CBDC, as noted in previous reports. However, in recent reports, it was stated that the banking system's own reach would then be extended much further.
Participating Banks in Russia's Digital Currency
1. Sberbank
2. VTB
3. Tinkoff Bank
4. The Bank of Moscow
5. Gazprombank
6. Transneftbank
7. Rosbank
8. Promsvyazbank
9. Dom.RF
10. Ak Bars Bank
11. SKB-Bank
13. TKB
14. Soyuz
It was noted that these are all the banks that have reportedly signed up to participate in the digital ruble's pilot program. The Bank of Russia already announced its CBDC strategy back in 2020.
Association of Russian Banks Criticism
In January, it was noted that the Association of Russian Banks criticized the whole project. During this period, it was stated that any of the Bank of Russia's own proposed models could entail a number of cybersecurity and fraud risks. A $28 billion Malaysian Commodities Trading firm has also announced its choice to migrate from ETH to Matic to tokenize its equity.
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Written by Urian B.
