On Tuesday the Bank of Russia released a consultation paper on the development of the digital Russian ruble, confirming plans aired previously.
Dubbed ‘central bank digital currency,’ or CBDC, the digital ruble could become an additional form of money alongside cash and non-cash.
“All three forms of the Russian ruble will be absolutely equal: 1 ruble in cash is equivalent to 1 non-cash ruble, and 1 digital ruble will be equivalent to each of them”, according to the central bank’s statement.
The digital ruble can be used to pay for goods and services, make payments to organizations and the state, funds transfers, pay for transactions with financial instruments and digital financial assets.
The establishment of the CBDC project will require the creation of additional payment infrastructure, the bank said.
QR codes or biometric technologies can be used to make payments using the digital ruble. Companies will be able to use the digital ruble to complement the existing cashless payments system.
The central bank points out that introduction of the digital ruble can contribute to the creation of a secure environment for the functioning of smart contracts and settlements without the use of substitutes, and will also stimulate innovations.
However, no time frame for issuing the digital ruble has been announced.
The central bank is currently collecting opinions from experts, who may contribute using this email address: cbdc[at]cbr.ru.