08-19-2022 icon

Russia Reserve Bank to Initiate Availability of Virtual Rubles Across all Banks in 2024

By Lucy Adegbe

…The nation’s central financial authority plans to introduce digital rubles across other residential financial institutions as soon as the currency is fully developed. 

Russia Central Bank is reported to have drawn up a legal framework that indicates the anticipated pathway for its financial policy between the years 2023 and 2025, with highlights that a major objective is to effectively inaugurate a virtual representation of its legal tender, rubles. 

According to the outline of the draft, the bank aims to commence an extensive enactment of the digital currency in two years. 

“In 2024, the bank of Russia will begin to gradually connect all credit institutions to the digital ruble platform and increase the number of available payment options and transactions using smart contracts.”

Although the digital coin implementation process is planned to begin in 2024, other vital supplementary elements like offline modes as well as connections with trading protocols and other non-banking monetary institutions may surface in 2025, Bits.media emphasized. 

The bank further clarified that policies may be put in place to regulate virtual currency utilization in the state when necessary.

Analysts have noted the dangers of launching a central bank digital currency, citing the possibility of an unstable financial system. Nonetheless, the reserve bank authority has underlined that the virtual rubles are to be presented as “an additional incentive to increase the attractiveness of bank accounts.”

In May, the bank’s deputy governor Olga Skorobogatova acknowledged that the monetary embargoes levied on the nation due to its attack on Ukraine have immensely influenced the conclusion to push for the nation’s backed digital coin.