Based on new reports of the Bank of Russia’s rejection of the Ministry of Finance’s proposal to regulate cryptocurrencies, the central bank began experiments with its digital currency.
Russia’s central bank has officially begun attempts at the digital ruble by completing the first central bank transfers in digital currency (CBDC) between citizens, the Bank of Russia said on Tuesday. The launch is in line with the bank’s plans to launch the first digital ruble transactions in early 2022.
The bank said that three of the 12 financial institutions in the digital ruble pilot group have already integrated the CBDC platform, with two of them completing “a full cycle of customer-to-customer digital ruble transfers using mobile banking apps.”
In the first phase of testing, users will open wallets on the digital ruble platform through a mobile application, as well as convert non-cash fiat currencies into the digital currency of the central bank and make transactions with the latter’s tokens.
In the second stage, the bank plans to test the digital ruble as payment for goods and services, as well as other potential applications related to smart contracts and interaction with the Federal Ministry of Finance. In the future, the central bank also plans to introduce digital ruble payments offline and provide an opportunity for non-resident customers to carry out transactions, the report states.
Olga Skorobogatova, first deputy director of the Bank of Russia, said the digital ruble represents “a new opportunity for citizens, companies and the state”, adding that such transactions will be free and available in all regions of the country.
The Bank of Russia also noted that the digital ruble will be unique in that it can be accessed through “a mobile application to any bank serving a client.”
The Bank of Russia’s statement comes amid local reports claiming that the Bank of Russia has officially opposed the Treasury’s concept of regulating cryptocurrencies, which was introduced on 8 February.
About the topic: The Russian Ministry of Finance wants to legalize bitcoin mining in some regions
At a press conference on Friday, the head of the Bank of Russia, Elvira Nabiullina, said that the agency will continue to fight with the introduction of cryptocurrencies in Russia with all its might, and said:
We will not spare any effort to convince the government and go into more detail about our arguments, because we see great risks. I trust common sense here. “