The digital ruble can help curb the use of "money surrogates"

The launch of a digital ruble will be among the key priorities of Russia's digitization this decade, confirming the country's financial market development strategy. The document says that issuing a digital national fiat currency will help the central bank prevent Russians from using "money surrogates" as officials previously called cryptocurrencies.

Bank of Russia will issue digital ruble by 2030

The document planning the Strategy for the Development of the Financial Market of the Russian Federation by 2030 was released this week by the Ministry of Finance. The plan is open for public discussions between September 14 and October 13, 2021, according to a notice published by the state automated information system.

The strategy defines the launch of a digital version of the Russian ruble as one of the priority tasks in the field of digitization. The digital ruble, the authors pointed out, will become the third form of currency issued by the Russian Central Bank (CBR).

The central bank's digital currency (CBDC) is expected to facilitate the development of Russia's payment infrastructure and the introduction of innovative financial instruments. The digital ruble is also expected to increase the availability of banking services for private and business users by reducing transaction costs.

Discourage the use of Bitcoin and other altcoins

Moscow hopes the digital ruble will allow it to "continue to discourage the use of monetary surrogates" which are prohibited under current law. Russian regulators have previously described cryptocurrencies using that term. The Ministry of Finance insists that money surrogates pose threats of money laundering and terrorist financing, pose risks to Russian citizens and hinder macroeconomic policies. Put simply, they don't want to lose control over the pockets of the Russians.

In addition, the country plans to proceed with the development of its Mir payment system, a faster payment system and a financial messaging system in the country. Bank of Russia will implement Suptech and Regtech solutions to analyze transactions and monitor regulatory compliance in order to more effectively manage risks and ensure information security. The document notes:

"In the context of the launch of the digital ruble and the development of payment instruments, the Government of the Russian Federation and the Bank of Russia will continue to oppose the use of monetary surrogates."

To ensure consumer protection, Russia will take into account the international standards established by the Committee on Payments and Market Infrastructure, the International Organization of Securities Commissions and the Financial Stability Board, the strategy underlines. The digital ruble should allow authorities to better deal with crises and inflation, while maintaining the stability of the Russian economy.

Speaking to reporters last week, President Vladimir Putin's press secretary Dmitry Peskov said the Russian Federation is not ready to recognize bitcoin, insisting that such a move would not benefit the country. Yet, if you want, you can also use it there Bitcoin system to buy and sell the main cryptocurrency. Have you already done it? Let us know in the comments below.