Russia’s central bank has a plan to launch the digital ruble, but it will not replace paper money, claims Elvira Nabiullina, head of the central bank.
As reported by a local news agency, the central bank head unveils plan to roll out the pilot test program before the end of the next year. While talking at an online conference, Nabiullina expresses the goal that they will “collect feedback by the end of the year.” Currently, Russian authorities do not have a plan to develop a central bank digital currency, but if a decision is to be made to create a digital currency, they “will prepare a full-fledged concept.”
According to Nabiullina, the digital currency would be checked after distribution of it among a few numbers before its launch on a mass level. He explains such kinds of pilot tests are expected to take place by the end of 2021. The central bank of China, on the other hand, is testing its digital currency, DCEP, by distributing among citizens in Shenzhen.
Digital Ruble: Third Form of Money
The head of Russia’s central bank makes it clear that the coming digital ruble will not replace cash and non-cash. “We do not set the task of ousting some kind of money, it will be, in fact, the third form of money, along with cash and non-cash, which now exist,” he said.
As compared to cash, there will be no anonymity for digital rubble but they will focus more on confidentiality as it is one of their major tasks in the launching of CBDC.
Digital transformation will take place after the launch of the digital ruble. It will also make significant changes in the financial system and would assist in the “development of the digital economy as a whole.”
For cryptocurrency, the Russian authorities have not produced a complete regulatory statement. Besides unclear status about cryptocurrency in the country, it is one of the major hot spots where Bitcoin is gaining recognition on a large scale.
Some countries take the leading position in the development and launch of central bank digital currency. For instance, China will be the first country to issue a digital currency at a state level.