Russia allows foreign residents to own and use digital rubles - Finance

The Russian central bank wants to ensure that the digital rubles can be converted into foreign currencies and can be used by non -regional. In a document on the digitization of the Russian financial sector, the regulatory authority reaffirms its concern about the risks associated with cryptocurrencies and insists that state -spending digital currencies are more secure.

Bank of Russia grants foreigners access to their CBDC

The central bank of the Russian Federation (CBR) will facilitate the exchange of digital ruble to foreign currencies and make users resident outside their jurisdiction to open and use digital rubles. The currency authority has disclosed these intentions in its project "Main directions for the digitization of the financial market 2022-2024" before short.

The Bank of Russia began to think about a digital central bank currency ( cbdc ) in 2018 and decided last last Year to check the possibility of an edition. A consultation paper was released in October 2020 to obtain feedback from actors from the financial sector. In April 2021, the regulatory authority published a concept for the digital ruble in which the main architecture was outlined.

In June, the CBR formed a pilot group for the digital rubles with over a dozen banks and other interest groups. The authority wants to complete the platform prototype by the end of December and start testing with the CBDC in January. Forlog and RBC reported that it was planned to gradually expand the circle of participants and the type of transactions.

In the first phase of experiments in 2022, the Bank of Russia will invite credit organizations and carry out consumer-to-consumer business. In the second stage, the federal treasury and financial intermediaries such as non-banks payment service providers, stock exchanges, brokers, marketplaces and insurance companies will be added.

Smart Contracts and offline mode as well as the possibility of converting digital rubles into foreign currency are also introduced. The CBR claims that the use of the digital ruble will increase the availability of financial services for the population. It says that uniform Honorare lowers the transaction costs. The platform is also used for targeted payments to citizens and companies.

In the document, the Russian central bank once again drawn attention to the risks that it sees in decentralized digital currencies such as Bitcoin. The CBR confirms its Position their high volatility cannot be used as a means of payment In view of the different regulatory approaches, the bank nevertheless indicates a trend towards tightening the regulations in the crypto room. The Bank of Russia also insists that CBDCs can react to the need for secure digital payments.

What do you think of Russia's plans for the digital ruble project? Tell us in the comment area below.

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