The Russian Federation's central bank is actively considering the launch of its own digital currency, known as a CBDC.
As explained by the Bank of Russia's Governor Elvira Nabiullina, the institution is keen on exploring a digital currency built on blockchain principles.
The governor highlighted that while there are no active projects, the bank is meticulously examining the blueprint for a potentially government-backed digital currency on blockchain.
Nabiullina mentioned this form of digital money could make transactions far simpler for the public, but she noticed that many still cherish cash for its privacy benefits. Although, technologies could be employed to enhance privacy in blockchain systems, that's a separate discussion. EY’s Nightfall protocol and JP Morgan’s Anonymous Zether tool Governor Nabiullina also indicated that multiple central banks, including Russia's, are analyzing if digital currencies can truly surpass traditional payment systems.
This discourse marks another step in Russia's move towards embracing the fintech revolution, especially blockchain-based payments.
Nabiullina seems to have shifted her perspective to appreciate blockchain's vast potential. Back in May, she was more skeptical regarding cryptocurrencies acting as state-controlled financial instruments.
The remarks from May were in line with the central bank's task of reviewing a legislative proposal from Russia's Duma.
Last year, the Duma proposed a 'cryptoruble,' a stablecoin concept. However, challenges like volatility could impede its immediate success as the ruble was one of the world's most volatile in 2018. to create a CBDC underpinned by gold reserves.
The Cryptoruble Stablecoin
Additionally, Deputy Finance Minister Alexey Moiseyev confirmed coordinated efforts with the Eurasian Economic Union towards a bloc-wide digital currency, possibly coming to life by 2020.
Just weeks apart, former Minister of Energy, Igor Yusufov, advocated for an oil-backed digital currency, arguing it could mitigate financial barriers faced by oil-exporting nations.
Russia's top influencers are evidently captivated by blockchain, each eyeing transformative changes that could bolster Russia's economic stature.
With Gazprom, Russia's energy titan, announcing initiatives this year aiming to streamline and digitalize gas operations through smart contracts, innovation is in the air.
This surge aligns with the Russian government's pursuit of a sweeping legislative measure to clarify and manage its corner of the cryptoeconomy, defining terms like 'tokens' and 'ICOs' for Russian stakeholders.
William M. Peaster brings expertise on Ethereum, Dai, and Bitcoin. His works are featured in top outlets like Blockonomi and Binance Academy. He keeps tabs on smart contracts, DAOs, and dApps, while honing his Solidity skills. Contact him via Telegram at @wmpeaster. developed a blockchain prototype Dojima Network is focused on building the scaffolding for a truly interconnected Web3 experience.
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