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Sunday, June 4, 2023

Sanctioned Russian Bank Tests In-app Operations With Digital Rubles

Sanctioned Russian Bank Tests In-app Operations With Digital Rubles – One of the first Russian lenders to participate in the trials of the central bank digital currency (CBDC) released by the Bank of Russia is Promsvyazbank (PSB). The bank has tested digital ruble transactions through its app for mobile devices, claims a report by the business news outlet Plus Journal.

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Participants have to complete an application registration process and set up a digital wallet in order to carry out the operations. They may then use their account to convert regular electronic bank money into digital rubles and send that money to other bank clients as well as clients of other banks participating in the test project.

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The Central Bank of Russia’s (CBR) digital ruble platform provided all the information about the transactions, and the balances of users’ digital wallets on the smartphone app were updated right away, according to the report. The monetary authority unveiled the platform’s prototype in the latter part of last year.

“PSB is one of the first banks to implement a simple and understandable technology for making transactions with digital rubles in a mobile application and successfully test it. We see great potential in this instrument, which we expect will become a new settlement standard in the Russian economy,” stated Senior Vice President Alexander Chernoshchekin, who heads the bank’s digital business unit.

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The top executive continued by saying that the successful testing provides the groundwork for ongoing business dealings with the digital ruble and creates new chances for the Russian people and companies. The populace will have access to dependable and secure digital currency transactions, and the state will have more capabilities to manage budget payments and targeted social payments, he stressed.

According to Chernoshchekin, the issue of automating all payments and internal business operations will be resolved with the aid of the new settlement technology. According to CBR officials, all payments are subject to encryption and other fraud-prevention measures. Bank of Russia is in charge of the storage and accounting in the ecosystem for the digital ruble.

When their systems are prepared to connect to the CBDC platform as part of the trials that began in early 2022, no fewer than a dozen credit institutions have chosen to participate in the testing of the digital ruble. Russia accelerated the project’s timeline this past summer with the goal of launching its digital currency fully in 2024.

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According to assets and deposits, Promsvyazbank is one of the top 10 banks in Russia. After being nationalized by the Russian government in 2018, the former private bank that belonged to Russian oligarchs Dmitry and Alexei Ananyev is now acknowledged as a bank that supports Russia’s defense sector. Sanctions against it have been put in place as a result of Russia’s military engagement in Ukraine.

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