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Russia to Trial Digital Ruble Settlements for Real Estate Deals

Russia to Trial Digital Ruble Settlements for Real Estate Deals – According to the regulator, which was cited this week by the daily Izvestia, Russia’s central bank plans to start integrating smart contracts with the digital ruble next April. Until then, a number of situations, such as automated payments and other transactions between customers and businesses, including real estate purchases, will be used to test the new iteration of the national fiat.

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In December 2021, the Bank of Russia completed the prototype platform for the central bank digital currency (CBDC). A dozen Russian banks joined the test program in January of this year.

Participants are currently creating wallets for banks and citizens, issuing digital rubles, and conducting transfers between them. During the second phase of the pilot, smart contracts will be introduced.

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Promsvyazbank (PSB) noted that smart contracts make it easier to carry out the terms of a contract without requiring a third party to act as a surety.

As soon as the ownership rights are transferred, the funds are transferred from a smart contract wallet on the digital ruble platform to the seller’s wallet. Rosbank stated that a lender may use the technology to provide specialized financing for a real estate purchase.

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Large businesses will be able to execute complex transactions thanks to the digital ruble smart contracts, Vneshtorgbank (VTB) stated.

Izvestia was informed by the bank, which is also a part of the pilot, that it intends to start experimenting with the purchase of digital financial assets (DFAs) with digital rubles in September.

Also Read: Bank for International Settlements to Launch a Market Intelligence Platform for Crypto Assets

In Russia, cryptocurrencies and tokens are currently referred to as DFAs. This fall, Russian lawmakers will consider a new “On Digital Currency” measure intended to broaden the legal environment for crypto assets.

The digital ruble initiative could also receive a boost from the financial and technological sanctions placed on Russia as a result of its conflict in Ukraine, according to experts in Moscow.

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