The Minister of State Duma, the lower house of Russian Parliament, Sergei Mironov, urged the federal government and the central bank and operational headquarters to make the digital ruble a reserve forex to counter sanctions, bitcoin.com cited Forklog news.
Mironov also explained financing of housing, other construction projects, as well as development of production and transportation infrastructure as special purposes behind the push for digital ruble.
Mironov emphasized the utility of the Russian CBDC in the following ways:
* He pushed the digital ruble to become a full-fledged investment and reserve currency for Russia.
* Mironov believes that CBDC will provide the Russian economy with much-needed funding without increasing inflation.
* The digital rubles cannot be deposited abroad or used for non-intended purposes.
Another Russian lawmaker and member of the crypto regulatory working group, Alexander Yakubovsky, said that Russia is eager to use digital currencies for regaining and restoring its access to international finance.
The Russian lawmakers have been looking for ways to circumvent financial penalties imposed by the West due to the ongoing war with Ukraine.
The sanctions restricted Russia’s access to its foreign reserves and the global financial market. The West has raised serious concerns over the approach of Russia to CBDCs, fearing that it will be used to evade the sanctions that have been isolating the country.
The Central Bank of Russia (CBR), which has been calling for blanket ban on cryptocurrencies and opposing its legalizations strongly favours the development of cryptocurrencies, and is working actively in the digital ruble project. The Central Bank believes that its digital currency will create new opportunities for Russian citizens, businesses, and the state. As many as 12 Russian banks will participate in the CBDC trials, bitcoin.com reported.
The monetary authority began contemplating creating a CBDC three years ago. A consultation paper was published in October 2020 and in April 2021, the bank released a digital ruble concept outlining its principal architecture.
The creation of a prototype of the digital ruble platform was completed in December 2021. Furthermore, the CBR and market participants had successfully completed the first digital ruble transfers between individuals in February 2022.