“People in Russia are in dire need of digital rube as its use will enable them to send and receive efficient and non-expensive payments”, says Elvira Nabiullina, the Governor Central Bank of Russia. She also warned citizens against the use of virtual currencies and stablecoins which, according to her, pose grave financial risks.
Elvira Nabiullina is the Governor of Central Bank of Russia (CBR) who has a crucial role to play in the country’s financial stability. Like every other conscious minded people, she too does not offer her full faith and confidence into virtual assets. She has been often seen pointing out her concerns regarding cryptocurrencies.
In the recent times, CBR’s Governor attended an international conference organized by Institute of Emerging Economies, Bank of Finland. During the conference, she re-affirmed her view regarding virtual currencies and said that their use poses great danger. She also suggested that Russian economy as well as the country’s financial stability are endangered by cryptocurrencies. Even stablecoins, which though are backed by physical currencies, are Therefore, a very cautious approach has been maintained by CBR with regard to crypto and stablecoins, she claimed.
She then talked about CBDC and the project of “digital Ruble” which is current under development. Though she had concerns regarding crypto yet her viewpoint on digital Ruble was to the contrary. She suggested that digital Ruble is something which the Russians need on an urgent basis. To her, CBDC has the solution which can enable Russians to receive and send payments on cheap rates. In addition, the funds sent or received through CBDCs will be efficient and reliable not like the cryptocurrencies.
Governor Nabiullina clarified that CBR does not support or nor gives any backing to crypto payment system in the country. She also clarified that Russian ruble is the only acceptable mode of payment in Russia. So those advocating in favor of legalizing the use of Bitcoin are on the wrong path. There shall be no legal tender given either to Bitcoin or any other virtual currency in the near or far future. The only digital currency which will enjoy such a privilege will be the official “digital ruble” to be issued by CBR, she declared.
While discussing digital Ruble, she said that the project is underway and will soon be made public after testing. However, there are laws which need to be first modified and codified with the relevant provisions of digital Ruble. She told that the policy makers have been assigned the task of recommending laws requiring modifications. She pointed out that Russia started to work on the CBDC in 2018. For three years, developers and experts have been working on the project to make it robust and effective for the Russian people. Whenever the project will be launched, the Russians can easily determine the difference between digital Ruble and CBDCs of the world.