21:22, 13 October 2020 Page views 607 views

Bank of Russia announces public discussions on digital ruble

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19157.jpgDigital financial technologies usage is expanding in Russia and globally. Cashless payments are becoming more common every day. In these circumstances, the public demands faster, more convenient and safer payment methods based on modern technologies.

Many central banks are discussing the possibility to introduce central bank digital currencies (CBDC). In response to the evolving needs of households and businesses, the Bank of Russia is assessing the possibilities and prospects of introducing a digital ruble. This work will be conducted in close cooperation with the public. In order to encourage an extensive discussion of this issue, the Bank of Russia has published a consultation paper.

A digital ruble is a digital form of the Russian national currency that will be issued along with the currently existing forms of money (cash and non-cash rubles). Individuals will be able to credit digital rubles to their electronic wallets and use them with the help of mobile or other devices both with and without an Internet connection (that is, online or offline).

Depending on their needs, households and businesses will be able to freely convert their money between forms (digital rubles into cash or bank account, and back). This requires a development of special technologies to enable the offline usage of digital rubles. Provided that, a digital ruble will be able to combine the benefits of cash and non-cash money.

Cutting-edge technologies used to develop a digital ruble will help reduce payment costs, increase financial inclusion and boost further improvement of payment technologies. The Bank of Russia will consider all these aspects, along with the uncompromising information security requirements, in its further work on the digital ruble project when selecting specific functional and technological solutions.