- The targeting technique, or coloring, as it is commonly known, would boost the effectiveness of government expenditure, according to the central bank.
- An implementation schedule for the CBDC was offered in the report.
- According to the Bank of Russia, a digital ruble would make financial services more accessible particularly in distant areas, reduce the cost of settlements, and aid in the creation of a new payment infrastructure both inside Russia and with other countries.
The Concept of Digital Rubles
The development of a digital currency is moving forward in Russia. The Bank of Russia stated in its most recent monetary policy statement that the adoption of a targeting technology would be possible with its central bank digital currency (CBDC), meaning that some digital rubles could be created to only be used to purchase particular products or services.
The targeting technique, or coloring, as it is commonly known, would boost the effectiveness of government expenditure, according to the central bank. Contracts with the government and public procurement were singled out as possible applications for the technology.
An implementation schedule for the CBDC was offered in the report. On the digital ruble platform in 2023, test real money transactions and smart contract settlements. The next year, credit institutions are anticipated to be connected, and the state will be able to send and receive payments in virtual rubles. In 2025, an offline mode will enable the integration of financial organisations from beyond the banking industry.
The Perks with Digital Rubles
According to the Bank of Russia, a digital ruble would make financial services more accessible particularly in distant areas, reduce the cost of settlements, and aid in the creation of a new payment infrastructure both inside Russia and with other countries. Following Vladimir Putin’s decision to forbid cryptocurrency payments, the report was released. Despite the country’s exclusion from the SWIFT financial system, the Bank of Russia has declared that it would not object to the usage of cryptocurrencies in cross-border transactions.
Source: https://www.thecoinrepublic.com/2022/08/14/russia-in-plans-of-introducing-targeted-cbdc-as-digital-rubles-by-2023/