The digital ruble should not boost inflation, says the Bank of Russia finance

The Bank of Russia is preparing for a longer test of the digital version of the national Fiat to ensure that it is a "full ruble", emphasized the head of the currency authority. The regulatory authority has submitted some conditions for the implementation of the new currency project.

Bank of Russia defines conditions for digital ruble currency

The central bank of the Russian Federation (CBR) can check whether For more than a year before it finally the CBDC, said the chairwoman of the bank, Elvira Nabiullina, during a session of the important one Financial market committee in the state duma, the lower house of the parliament. The head of the regulatory authority insisted that the project of the digital ruble is only realized if it meets certain criteria.

The first requirement of the currency authority is that the digital currency is freely converted into the other two forms of Russian Fiat, cash and bank money. Answering a question about the risks of the introduction of the coin, Nabiullina emphasized that the matter affects the circulation of money and that the tax authorities must be very careful. Quoted from the Finmarket business portal, she explains:

It should be a real, full ruble. There will be no discounts or the like.

The top manager of the central bank further explained that the Prototype The digital ruBels is expected to be early next year introduced before attempts are carried out for at least another 12 months to see how the CBDC works. The governor also noticed that another important prerequisite for the success of the digital ruble is to ensure that he does not accelerate inflation.

The Bank of Russia wants the citizens to really choose the digital ruble, as well as they increasingly choose cashless payment solutions, which rose from 30 % in 2014 to 75 % in the third quarter of 2021. The task, emphasized Nabiullina, did not shape many digital rubles, but to use this new currency to reduce transaction costs. "Technologies enable us now. And that will be the success criterion for us, not the volume of the digital rubles," she emphasized.

In June, the Russian central bank formed a pilot group for the digital ruble, in which more than a dozen banks and other institutions took part. The authority plans to complete the development of the prototype of the platform in December 2021 and to start testing the CBDC in several stages in January 2022. Planning Russian officials, change 13 laws and codes for adaptation to the digital currency.

Do you expect Russia to spend a digital rubles at some point? Let us know in the comment area below.

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