Russia to roll out digital rouble platform prototype in early 2022, Central Bank Governor

Russia to roll out digital rouble platform prototype in early 2022, Central Bank Governor

BUSINESS/ECONOMY| Nov 09, 2021 | WOZINGA NEWS

Russia to roll out digital rouble platform prototype in early 2022, Central Bank Governor

  • Russian lawmakers will start working on the legal adjustments of the digital rouble plan. 

By Marielle Petere Wozinga Staff

Russia to roll out digital rouble platform prototype in early 2022, Central Bank Governor

Russia’s Central Bank Governor, Elvira Nabiullina, announced on Tuesday.the upcoming prototype of Russia’s digital rouble platform. The country will carry out the project in early 2022, Reuters reported

People’s Bank of China, European Central Bank, Bank of Korea, Bank of Japan, and Central Bank of Iran are among the pioneering central banks to examine the benefits of digital currency. 

Banks participation on CBDC project

In late 2020, the Central Bank of the Russian Federation declared its CBDC strategy. However, the Association of Russian Banks disagreed with the CBDC project. The association pointed out that the proposed CBDC might become a cybersecurity threat and fraud. 

To answer those concerns, CBR appointed a team of financial firms to look into the launch of CBDC. Besides, there is an additional report about the expansion of the banking system. 

State-backed banks, like VTB and Sberbank, will participate in the project. Not only the government-backed banks ought to join, but also the notable private banks. To name some private banks, these are Rosbank Ak Bars bank, SKB-Bank, and Tinkoff Bank. 

Changing regulations for digital rouble

More than eight federal laws and five codes are the potential rules to be changed for approved implementation of the digital rouble. It covers Administrative Code, Criminal Code, Tax Code, Budgetary Code, and Civil code. 

Based on another report, trial and deliberation will undergo several stages. The modification of regulations tackles important matters, like the officials of Bank of Russia will establish new currency. 

Among the several impacts is the payment purpose if implemented. CBR will execute the first stage; it is about producing digital rouble with the involvement of twelve banks. 

Do you think implementing digital currency is susceptible to cybersecurity threats?

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