Digital ruble highest type of cash, Russia says

The digital ruble is the highest form of money, and most Russians will use the digital currency for their daily activities in three years’ time, according to Anatoly Aksakov, chairman of the Russian State Duma committee on the financial market. He said Russia’s central bank will launch a digital ruble prototype by the end of this year.

In an interview with a television broadcaster, RT, Aksakov said the central bank was ready to start testing the CBDC in early 2022. He valued the risk-free nature of the digital ruble and told RT: “It is worth noting that, unlike cryptocurrencies, the risks for digital ruble holders are minimal, as the issuer is known in the person of the central bank, there is financial support. In fact, this is the same ruble, but in digital form. “

He also mentioned that Russia is working to drastically reduce its dependence on the US dollar. “The main reason is geopolitical risk. […] In the past three years the dollar’s share of our international reserves has halved: from 45% to 22%. Russia will rely on the digital ruble as one of the measures to reduce its dependence on the USD. However, he noted that a complete move away from the dollar may be impossible in the near future. “

Other countries are taking similar steps to reduce their dependence on the USD. They have taken similar steps and developed sovereign digital currencies that they believe are a better alternative to reserve currency. For example, China’s digital yuan. Former Governor of the People’s Bank of China Downplayed claims that the digital yuan poses a threat to the USD In December.

“When you are ready to use it, the yuan can be used for trading and investing. But we’re not like Libra and we don’t have the ambition to replace existing currencies, ”he said at the time.

Iranian President Hasan Rouhani has also urged Muslim nations to do so develop their digital currency combat US economic dominance.

Aksakov’s latest comments come when the Russian central bank is concerned about the impact of stablecoin on the economy. Ivan Zimin, the head of the bank’s financial technology department, recently stated that stablecoins threaten the dominance of the ruble in Russia.

“We have already taken the first step to restrict the use of unsecured cryptocurrencies and we will likely take a second step by restricting the use of stable coins for payments,” he said specified.

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