A recent statement from a senior executive of Russia’s central bank (Bank of Russia) stated that the bank is planning to launch a prototype for the Ruble digital currency by the end of 2021. With this Russia is moving one step further to introduce a Ruble -backed cryptocurrency.
Deputy governor of the Bank of Russia, Alexey Zabotkin stated that the prototype that will be launched later will not serve as a medium of transactions but only as a ‘foundation stone’ for the entire ecosystem. After a prototype launch later this year, the central bank will conduct an experiment the following year before issuing a comprehensive digital currency.
The cryptocurrency to be issued is like the CBDC pegged by the Russian currency, the Ruble. The central bank expects the digital version of the Ruble to speed up and simplify payments. Not only that, users can access digital rubles online or not.
Earlier this year, the Association of Bankers of Russia (ARB) had voiced concern over CBDC cryptocurrencies being pegged by risk currencies. The ARB sees the CBDC as not immune from the risks of fraud and cybersecurity. The central bank has responded that it will update the concept of the digital ruble and complete a more friendly model.
Of late Russia has taken a number of steps to relax crypto laws including recognizing crypto as a form of property.
