Russian deputy chairman Alexey Zabotkin recently announced that the Central Bank of the Russian Federation is planning to showcase a prototype for its ruble-backed digital currency later this year.
In an online event hosted by the Russian Economic School, a Moscow-based private college, Zabotkin revealed that the prototype would be available for people to try but won’t support any real money transactions as of the moment.
‘Once we have assessed the results based on that prototype and any additional developments, we will start using it completely,’ Zabotkin said during the event.
Despite the earlier controversy caused by the central bank digital currency (CBDC) project among the country’s financial industry players, the Bank of Russia plans to move ahead with the idea.
‘We’re keeping on with the plan we earlier announced. However, we’re still in the process of developing the design of the digital ruble, which will be public and discussed with the market participants. Moreover, the decision to officially launch this digital Ruble will depend on the test results that we will receive this year,’ the bank stated in an email to media outlet CoinDesk.
The project was revealed in October last year when the Bank of Russia issued an analytical report discussing the possible design of a ruble-backed CBDC. Due to the report, the higher officials then proposed several scenarios such as the ability to track government spending more effectively and to provide digital payment options in areas where internet connections are limited.
‘After this announcement, almost 83% of the people supported the idea of the digital ruble,’ the bank’s email statement further explained.
What’s next for the digital ruble?
The Association of Russian Banks (ARB) also voiced concerns that the design of the ruble-backed CBDC proposed by the Bank of Russia might not be as immune to fraud and cybersecurity risks as they think it is.
Just last February, Deputy Chairwoman Olga Skorobogatova addressed these concerns. She stated that the bank would update the digital ruble concept and prepare a friendlier model.
In the meantime, Russia has recently made some steps towards its several crypto laws, including recognizing crypto as property and making it a legal form of payment for goods and services.
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