The reserve bank of Russia is instituting selected banking firms to participate in a trial check of the central bank digital currency (CBDC) in the coming year. The Bank of Russia on Tuesday made a pronouncement regarding the CBDC. According to the information released, the bank has inaugurated a group to carry out trials on the CBDC otherwise called the digital ruble. The test group comprises twelve banks operating in Russia. The test group are made up of the biggest banks in Russia like Sberbank, few notable private banks including Tinkoff and several commercial banks.
The central bank’s effort is in tandem with the country’s goal which is to produce a digital ruble model before this year expires and carry out trials on it in January 2021. The first phase of the trial will include giving out or distributing the digital ruble. The reserve bank also has the intention of adding to the number of the participating financial institutions and also widen the scope of activities to ensure a thoroughness during the process.
The first deputy governor of the Russian reserve bank stated that the digital ruble will make remittances easy peasy. In October last year, the Russian reserve bank made public its plan about having a CBDC. They also released a proposal to that effect. The reserve bank’s focus on CBDC instead of cryptocurrencies has made some chagrined over the bank’s primacy scale. The famous billionaire, Oleg Deripaska, has not been impressed with the bank’s interest in digital ruble over cryptocurrencies. He asserted that the reserve bank should provide a tool for settling exchanges internationally that will function without dependencies.
The chief executive officer of Tinkoff alleged that the reserve bank’s stringent principles as it concerns crypto was the major hindrance to Tinkoff engagement in offering crypto related services.
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