The Bank of Russia has officially announced that tests for a digital Ruble will be taking place next year, thus marking a critical moment in the country’s economic history as the government moves ever closer towards adopting CBDC.
Ola Skorobogatova, the First Deputy Governor, asserted that a prototype for the digital Ruble should be created sometime in December. At the press conference where this announcement had taken place, Skorobogatova had also announced that the asset, which is based upon Distributed Ledger Technology, is likely to utilize open-source code which will experience centralized control by the bank.
‘Many products may claim to be ready-to-use, but we cannot use them, according to Skorobogatova
Skorobogatova had also made it known that although there are numerous ‘ready to use products by various projects, none of them seems to work with the digital Ruble.
Russia had been considering venturing forth into the CBDC territory for a while now, and this latest development is a culmination of both consistent internal discussions and deliberations as well as feedback. Furthermore, commercial institutions and banks will be contributing to the pilot program, as their participation and ability to work alongside the concept and potential implementation of a digital Ruble is crucial.
Moreover, there had also been reports in the past which indicated that digital currencies might overtake SWIFT in the future. In related news, the Russian central bank shall also be opening wallets for the commercial banks for the purpose of storing digital Ruble. These banks will also be responsible for opening wallets for their clients, in addition to focusing on introducing smart contracts in order for conditional transactions to be made possible as well. Lastly, the digital Ruble will also be kept with the end-users themselves so as to keep wallets available for use in the case of bankruptcy.
Many countries continue to test CBDC
Russia seems to be the next participant to join in on the digital currency craze as CBDC (Central Bank Digital Currencies) are adopted by more and more countries, most notably that of Japan and China. It does seem inevitable that nearly all countries will eventually be forced to either adopt CBDC or at the very least acknowledge its existence. The rise of CBDC had also been attributed to the recent rise in price for Bitcoin.
As of the time of this writing, China leads the pack as others such as France, Sweden, Australia, and Japan continue their respective testing phases. Although there is no official announcement or schedule as to when the digital Ruble will be taken beyond the initial pilot program, the intention remains clear that Russia does not want to fall behind any other country when it comes to CBDC.