Russia is developing a plan which will create digital ruble by designing its own framework.
On Tuesday, Elvira Nabiulina, governor of Russia's central bank, said the country would have a prototype of its digital ruble platform ready by early 2022 and release it for test use next year before making a final decision on whether or not to launch a digital currency. as Reuters reports.
Meanwhile, it is reported that the Russian legislature will begin work on the necessary legal adjustments to implement the digital ruble adjustment plan for the digital currency. According to Izvestia, Anatoliy Aksakov, head of the State Duma's financial markets committee, said changes to the law will begin as soon as the Central Bank of Digital Currency (CBDC) tests are carried out.
At least eight federal laws and five laws, including the Criminal Code, the Criminal Code, the Criminal Code, the Criminal Code and the Criminal Code, must be amended for the digital ruble to take effect. The new rules will address several issues, such as the power of the Central Bank of Russia (CBR) to regulate the circulation of the new currency, its acceptance as a means of payment, and so on, the report said.
According to reports, the process will take place in several stages. In the first stage, CBR will provide digital currency. The size of the pilot project network will increase, starting with 12 banks. Previous reports indicated that CBR formed a group of financial firms to investigate their CBDCs. However, according to recent reports, the scope of the banking system will continue to expand.
Participating banks include major Russian banks such as Sberbank and state-sponsored VTB, as well as powerful private banks such as Tinkoff Bank. Bank of Moscow, Transneftbank, Gazprombank, Promsvyazbank, Rosbank, Ak Bars Bank, Dom.RF, SKB-Bank, TKB and Soyuz Bank are among the banks that have signed up for the pilot program for the digital ruble.
The Bank of Russia announced its strategy for a CBDC in late 2020. In January, the Association of Banks of Russia criticized the project, saying that one of the models proposed by the Bank of Russia could involve some cybersecurity and fraud risks.
In response to the increasing use of Bitcoin (BTC) and the decreasing use of cash, several central banks around the world are examining the possibility of issuing CBDCs. These include the European Central Bank and the People's Bank of China.