Good day everybody,
Welcome to CryptoGod-1's blog on all things crypto. It has been announced that Vladimir Putin ahs signed a Digital Ruble Law, meaning that Russia is moving one step closer towards a Central Bank Digital Currency (CBDC).
Digital Ruble
The Russian President, Vladimir Putin, has officially signed a bill that will introduce a digital version of the country's national currency. The move was announced via an official document, which notes that legal authority will be given to the Bank of Russia, the nations Central Bank, to act as platform operator for the Digital Ruble. Under the new law, the Central Bank of Russia will also be responsible for managing the currency, while acting as principal operator of the digital ruble infrastructure and holding responsibility for all stored assets.
The Digital Ruble will be used as a new form of payment within Russia, and work alongside cash and non-cash rubles. The plan if for tests to begin of this new payment form from the 1st of August 2023. The governer of the Bank of Russia, Elvira Nabiullina, made it clear that that new CBDC will not be compulsory for Russian citizens to use, and that individuals will have the freedom of choice. She also stated that she hopes the Digital Ruble would act as a more convenient and cost-effective means for both individuals and businesses.
“No one is going to force anyone into the digital ruble [...] But we really hope that it will be more convenient and cheaper for both people and businesses, and they will start using it. This is a new opportunity.”
Russia Moves Ahead in CBDC Race
Russia had been considering the move to a Digital Ruble for a number of years now, and while the concept struggled to gain traction in the past, they made have progress even under the sanctions of the United States and their allies. The sanctions, imposed due to the war in Ukraine, has led to a sense of urgency in Russia to get their CBDC launched, which led to the swift passing of the bill in both houses of Russia's parliament - the State Duma and the Federation Council.
While the United States and their allies look to regulate and control cryptocurrency from expanding without govern in their nations, Russia have taken a different approach. They have become the 11th nation to launch a CBDC, following China, The Bahamas, Nigeria, Anguilla, Jamaica, and seven further Eastern Caribbean nations. There are 130 countries, representing 98% of global GDP, currently considering the use of CBDC's, according to the Atlanic Council CBDC tracker.
The Digital Ruble had been in development from the Bank of Russia for some time, with an analytical report on the topic released back in 2020. This included feedback from Russian banks and other financial market participants. In February 2022, a pilot test program was conducted with several banks within the nation.
While the "Modern Cold War" seems to be focused around digital transactions and currencies, the United States are one of the few nation with no confirmed plans to launch a digital currency. Whether or not this is a good sign remains to be seen, but they have been working on a wholesale (bank-to-bank) CBDC. There are currently 12 cross-border wholesale CBDC projects, and this seems the primary focus for the United States for now.
Have a great day.
Peace. CryptoGod-1.
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