Bank of Russia Outlines Payment Models With Digital Ruble and Other CBDCs – The Russian press revealed that the Bank of Russia is planning to offer options for processing cross-border central bank digital currency (CBDC) payments as part of its efforts to launch a central bank digital currency (CBDC) despite sanctions and financial constraints. The proposals are included in a presentation obtained by the Russian business daily Kommersant.
The document describes two alternative payment methods that the Russian monetary policy regulator plans to develop during the first quarter of 2023. The first method is based on bilateral agreements between nations to link their digital currency networks. This strategy prioritizes securing CBDC convertibility between two participating nations and facilitating transfers in accordance with predetermined rules.
People Also Read: Goldman Sachs To Start Cutting Up To 3200 Jobs This Week
As an alternative, the Bank of Russia proposes establishing a single, multilateral platform that enables transactions between the digital currencies of numerous states. In addition, these transactions would adhere to standardized procedures and standards. The sanctions imposed by the West over Russia’s invasion of Ukraine have severely restricted its access to global money and markets.
In addition to its efforts to accelerate the adoption of the digital ruble, the Russian central bank has relaxed its attitude on crypto payments so long as they are used exclusively in foreign trade or under specific legal frameworks. The presentation cited by the Russian daily also provides a glimpse of more upcoming CBDC project milestones, such as the testing of C2B transactions with partner institutions.
Over a dozen banks and other financial institutions have joined the trials thus far. Preparing the required legislation to control transactions using the digital version of the national currency is another priority for the aforementioned time frame. In December, a similar bill was already filed. In addition, the monetary authority intends to test digital ruble transactions between consumers on a restricted scale.
READ MORE
Nigeria to Stop Cash Withdrawals From Government Accounts
US Bankruptcy Court Rules Celsius Deposits Belong to the Firm
Italian Parliament Approves 26% Tax for Cryptocurrency Gains in 2023 Budget Law