Digital Ruble could be prone to fraud – ARD

TL;DR Breakdown

  • The Association of Russian Banks says Digital Ruble poses a number of risks. 
  • A top Russian government official says the country is not in haste to implement the currency.

Russian Banks through their association, ARB, has released a statement saying that Russia’s digital currency project, Digital Ruble, could pose a number of risks and challenges that could include cybersecurity and fraud.

The study which was carried out using 17 ARB affiliated institutions in Russia that accounted for more than 50% of the assets in the country’s banking system said that the challenges posed by the Digital Ruble is the same with those associated with cashless transactions that are run by the banks. 

To be more specific, the ARB added that the Digital Ruble also has some cybersecurity challenges attached to it. The body noted that online transactions were prone to attacks that could lead to an unauthorized access into customer accounts and data. This could result in issues of  identity theft or even stealing of the digital currency through the hack of the customers account and also lead to identification troubles.

The body concluded that all models of the Digital Ruble being proposed by the Central bank of Russia are susceptible to this level of attack.

Digital Ruble offline implementation also has some risks attached

The ARB further pointed out that the proposed CBDC project of the Russian government also has some risks attached to its offline implementation. One of such risks is that the authorities would be unable to trace any fraud related transaction that is carried out offline.

ARB says that such offline payments would drastically reduce the government ability to trace and prevent any fraudulent payment. This can be very dangerous to the potency of the offline model of the currency.

A top official of the Russian government, Dmitry Peskov, had earlier said the country was not in haste to implement the digital currency because of the level of risks that are attached to the currency. According to him, the country still needs enough time to assess the currency properly.