Russia to allow foreign residents to own and use digital ruble – finance bitcoin news

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Russia’s central bank intends to make the digital ruble convertible into foreign currency and can be used by non-residents. In a document devoted to the digitization of the Russian financial sector, the regulator reiterates its concerns about the risks associated with cryptocurrencies and insists that digital currencies issued by the state are more secure.

Bank of Russia to give foreigners access to its CBDC

The Central Bank of the Russian Federation (CBR) will facilitate the exchange of the digital ruble with foreign currencies and allow users residing outside its jurisdiction to open and use digital ruble wallets. The monetary authority revealed these intentions in its recently published project “Main directions for the digitization of the financial market, 2022 – 2024”.

The Bank of Russia started considering a central bank digital currency (CBDC) in 2018 and decided to explore the possibility of issuing one last year. A consultation document was published in October 2020 to collect feedback from stakeholders in the financial sector. In April 2021, the regulator released a digital ruble concept outlining its main architecture.

Russia to allow foreign residents to own and use the digital ruble

In June, the CBR formed a digital ruble pilot group with more than a dozen banks and other stakeholders. The authority wants to complete the platform prototype by the end of December and start testing with the CBDC in January. It plans to gradually expand the range of participants and types of transactions, Forklog and RBC said, citing the draft document.

In the first phase of testing in 2022, Bank of Russia will invite credit agencies and conduct consumer-to-consumer operations. The federal treasury will join the second stage, along with financial intermediaries such as non-bank payment service providers, stock exchanges, brokers, marketplaces and insurance companies.

Smart contracts and offline mode as well as the ability to convert digital rubles into foreign currencies will also be introduced. The CBR claims that using the digital ruble offline will increase the availability of financial services to the population. He says a uniform fee will reduce transaction costs. The platform will also be used for targeted payments to citizens and businesses.

In the document, the Russian central bank once again drew attention to the risks it sees in decentralized digital currencies like bitcoin. The CBR reiterates its position that cryptocurrencies cannot be used as a means of payment due to their high volatility.

Recognizing that there are different approaches to regulation, the bank nonetheless highlights a trend towards tougher rules relating to the crypto space. The Bank of Russia also insists that CBDCs can meet the need for secure digital payments.

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Bank, Bank of Russia, Banks, CBDC, Central Bank, Crypto, Cryptocurrencies, Cryptocurrency, Digital Currency, Document, Exchange, Fees, Financial Market, Foreign Currency, Foreign Currency, Non-Residents, Project, Russia, Russian , Russian Federation, Steps, Test, Test, Transactions, Test

What do you think of Russia’s plans for the digital ruble project? Tell us in the comments section below.

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