Elvira Nabiullina named the date of the preliminary launch of the new currency, named its advantages and risks, and also revealed some of the technical details of the project
The Bank of Russia may start piloting the digital ruble at the end of 2021, said the head of the Central Bank Elvira Nabiullina at a press conference following a meeting of the regulator’s board of directors. The head of the department added that the project organically fits into the development of the digital economy in Russia.
“After discussing the consultation report, if a decision is made on the feasibility of launching, we will prepare a full-fledged concept. Then there should be a mandatory stage of piloting with a limited number of users in order for everything to be worked out, and we understood how it works. And we think such piloting is possible by the end of next year. And as we get these results, we will move on, ”Nabiullina said.
According to her, the digital ruble will not fulfill the task of crowding out any type of money, but will become the third form along with cash and non-cash. Citizens and business will choose for what cases what type of ruble it will be more convenient for them to use. The Central Bank’s goal is to ensure the speed of conversion of one type of ruble into another.
Nabiullina explained that the digital ruble is a unique code that will increase the transparency of financial transactions. There will be no anonymity, as is the case with cash, but confidentiality is expected to be enhanced. Whether someone else, besides the Central Bank, will be able to see transactions will depend on the choice made within the framework of the digital ruble functioning model.
“We proceed from the premise that maximum trust and maximum confidentiality should be ensured to the digital ruble. This is the main task of introducing it, ”the head of the Bank of Russia stressed.
She called the advantage of the digital ruble a convenient electronic form and the ability to carry out payments offline when there is not even access to the Internet. This is a challenge for the Central Bank, since there are no ready-made solutions for this technology yet.
“We see how payment and settlement systems are developing, people and businesses want quick, convenient and almost instant settlements. In addition, the digital ruble is issued by the central bank, so the Central Bank is responsible for the stability of this money, this is also an advantage, “Nabiullina said.
On the downside, she highlighted issues related to digital security. Also, the subject for analysis is how the spread of the digital ruble can affect the financial sector as a whole. Here the head of the Central Bank sees small risks, because he understands all the tools, including interaction with banks to manage liquidity in these conditions.
Earlier, Dmitry Peskov , the special presidential envoy for digital and technological development, said that the digital ruble could appear in Russia in 3-7 years if we start developing it right now. At the same time, Peskov noted that Russia has no chances to become a leader in this area, for this it was necessary to start the process four years ago.
