The Central bank digital currency is a mode of payment that countries have been working on for quite a while. Although it mirrors how a digital asset works, the only difference is that a central financial institution backs it. Countries worldwide have been working on their respective CBDC, stating different use cases and other potential benefits of holding the digital currency. In a recent statement, Russia has mentioned that it wants to make sure foreigners can gain access and use its digital ruble.
Russia release its digitalization plan from 2022 to 2024
According to a statement by the Central bank in the country, not only will foreigners be able to use the digital ruble, but they will also be allowed to open a digital wallet where they can store the asset. The move was part of a larger plan to unravel the digitalization plans of the country’s financial institution from next year till 2024.
The premier bank in Russia started plans to actualize its digital version of its native currency last year. This came off the back of several kinds of research carried out by the bank to that effect. Further bolstering the use case and potential of the digital ruble, the bank consulted with stakeholders about how the development of the digital currency should look like. Earlier this year, Russia announced that it had drummed up a concept for its digital ruble, giving insights into its appearance.
The CBR continues to intensify its efforts on the digital ruble
Fast forward to June, and the country had already organized a list of potential stakeholders to act as a committee that will oversee the pilot test of the digital ruble. Russia is running against time to ensure that it creates a pilot test platform and that more testing is carried out across the country by next year.
Going by a document from the Central bank of Russia, the country is hoping to increase the testing of the digital ruble if the first few tests bring in positive results. The first stage of the testing will be carried out by several credit companies, which will focus on facilitating peer-to-peer transactions.
The federal treasury will be involved in the second stage of the digital ruble testing, which could also see the invitation of several non-financial companies. In the latter stages, the country intends to introduce smart contract options before finally allowing traders to convert their digital ruble into fiat currencies. Finally, an offline mode of sending and receiving the digital currency will also be in the works. The main reason why Russia wants to follow this lane is that it wants a grander audience to access the digital ruble after its creation.