Bank of Russia Governor Elvira Nabiullina said that the digital ruble will be introduced in the country only if it is freely converted into cash and non-cash form of the Russian ruble.
Nabiullina announced this at a meeting of the State Duma Committee on the Financial Market. Discussing the possibilities of the digital ruble and the risks of its implementation, Nabiullina emphasized that we are talking about finance and their circulation, so the regulator should be extremely careful and thoroughly prepare.
At the beginning of the month, it became known that a prototype platform for the digital ruble is planned to be launched next year. Nabiullina said that after that, it is necessary to test the central bank’s digital currency for at least a year in order to work out all possible options for its use and identify potential shortcomings. However, testing the digital ruble can take much longer until the regulator is confident in its uninterrupted operation.
“We need to make sure that the digital ruble can be easily converted into cash or non-cash on a one-to-one basis. We are talking about a real full-fledged ruble, and not about discounts, promotions or similar things. Only if this condition is met, the digital ruble will be launched at a large-scale level, ”Nabiullina said.
She added that the digital ruble will not in any way affect the inflation rate in Russia. The Chairman of the Central Bank of the Russian Federation also claims that the digital currency of the Russian central bank will not affect the rates on loans and deposits in the country and will not provoke an outflow of money from banks, which many financial experts fear.
According to Nabiullina, the regulator is not aimed at increasing the volume of the digital ruble and spreading it as much as possible across Russia. First of all, the digital ruble should make transactions more economical, and this will be an indicator of its success. Citizens are increasingly giving preference to non-cash payments, so they must make a choice in favor of the digital ruble on their own, says the Chairman of the Bank of Russia.
In October last year, the Central Bank of the Russian Federation began a public discussion about the launch of the digital ruble. In addition, this summer, the Bank of Russia created a task force to test its own digital currency. This group includes 12 banks, including VTB Bank, Tinkoff and Sberbank.