Home Coins Bitcoin (BTC) Digital Ruble: Russia Unveils Plans to Test Central Bank Digital Currency

Digital Ruble: Russia Unveils Plans to Test Central Bank Digital Currency

- Advertisement -


As China is actively testing its digital yuan, Russia is now planning to build and test a central bank digital currency, the digital ruble. Meanwhile, the Bank of Russia has proposed limiting the amount of bitcoin retail investors can buy.

Russia’s Central Bank Plans Digital Ruble

The central bank of Russia has outlined its plans to conduct an experiment using the digital ruble with a limited number of participants after public consultations, Izvestia publication reported last week. The Bank of Russia announced the development of the digital ruble and public consultations on its issuance on Oct. 13. Public comments on the issuance of the digital ruble are accepted until Dec. 31.

Five Russian banks have already expressed interest in participating in the central bank digital currency (CBDC) pilot: Credit Bank of Moscow, Promsvyazbank, Bank Zenit, Dom.RF, and Russian National Commercial Bank. The State Duma, the lower house of the Federal Assembly of Russia, expects the digital ruble experiment to start in the first half of 2021.

The digital ruble wallet can be used to pay for goods and services in stores where payment terminals will be configured to accept it. The central bank says that if the digital ruble is adopted, Russians may be able to receive salaries and benefits in it, the publication noted. After public consultations, if it is decided that a digital ruble will be created, the Bank of Russia will build a platform for it that will become part of the country’s payment infrastructure. The central bank was quoted as saying:

Citizens and businesses will be able to purchase digital rubles by exchanging them for cash or funds stored in their bank accounts. The possibility of receiving salaries, benefits or other payments in digital rubles is also being considered.

The Russian Ministry of Finance independently told the publication this week of possible pros and cons of the digital ruble. “Its advantages in the finance department include a reduction in transaction costs and the volume of burden on banks, an increase in cross-border payments, as well as a decrease in dependence on the dollar and exposure to sanctions,” the news outlet conveyed. Russia has been consistently pursuing a policy to reduce dependence on the dollar for several years.

The Russian government started exploring the cryptoruble back in 2017. There was even a bill to make the cryptoruble legal tender in Russia. However, the discussion fizzled out over time as the central bank opposed the concept.

Proposed Bitcoin Purchase Limit

Meanwhile, the Bank of Russia has proposed limiting the amount of cryptocurrency that unqualified investors can buy each year to 600,000 rubles ($7,734). The central bank’s proposal reads:

A limit is set for the purchase by an individual, unqualified investor, digital financial assets totaling 600,000 rubles within one year.

The restriction, if adopted, is expected to enter into force when the law “On Digital Financial Assets” comes into effect on Jan. 1 next year. Public comments on the proposed restriction can be submitted until Oct. 27.

What do you think about Russia’s digital ruble? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
472FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,558FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.21
GBP
1.34
CHF
1.12
NOK
0.11
JPY
0.01
CAD
0.78
AUD
0.74

Most Popular

Ripple has sold $15M of its stock in MoneyGram

Ripple Labs has sold a huge chunk of its 2019 investment in MoneyGram. Per a Friday night filing with the Securities and Exchange Commission...

Coinbase becomes a founding member of Square’s crypto patent group

The Cryptocurrency Open Patent Alliance, or COPA, headed up by finance company Square, recently picked up Coinbase as a cornerstone participant. Square unveiled...
bitcoin
Bitcoin (BTC) $ 18,943.23
ethereum
Ethereum (ETH) $ 585.54
ripple
XRP (XRP) $ 0.585251
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 283.28
bitcoin-cash-sv
Bitcoin SV (BSV) $ 182.13
litecoin
Litecoin (LTC) $ 81.96
eos
EOS (EOS) $ 2.92
binancecoin
Binance Coin (BNB) $ 29.24
okb
OKB (OKB) $ 5.10
tezos
Tezos (XTZ) $ 2.28
leo-token
LEO Token (LEO) $ 1.36
cardano
Cardano (ADA) $ 0.154857
monero
Monero (XMR) $ 128.41
stellar
Stellar (XLM) $ 0.170513
chainlink
Chainlink (LINK) $ 13.08
huobi-token
Huobi Token (HT) $ 3.91
tron
TRON (TRX) $ 0.030068
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 100.00
neo
NEO (NEO) $ 17.79
iota
IOTA (MIOTA) $ 0.334055
nem
NEM (XEM) $ 0.267820
zcash
Zcash (ZEC) $ 71.05
maker
Maker (MKR) $ 527.80
paxos-standard
Paxos Standard (PAX) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 6.09
vechain
VeChain (VET) $ 0.016633
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX Token (FTT) $ 4.41
kucoin-shares
KuCoin Shares (KCS) $ 0.818981
waves
Waves (WAVES) $ 7.64