The central bank may launch the digital ruble project on an experimental basis by the end of 2021.

This was announced on Friday, October 23, during a press conference by the chairman of the Central Bank Elvira Nabiullina.

“If a decision is made on the expediency of launching the digital ruble, we will prepare a full-fledged concept.

Then, in our opinion, there must necessarily be a stage of piloting with a limited number of users in order for everything to be worked out, and we understood how it works.

We consider such piloting possible sometime by the end of next year, "Nabiullina noted.

On October 13, the Bank of Russia presented a report on the creation and implementation of a digital national currency.

At the same time, the final decision on launching the project has not yet been made.

So, by the end of 2020, the Central Bank will accept proposals and feedback on the initiative from representatives of the financial sector and the expert community.

“We are really interested in discussing the prospects of introducing the digital ruble very broadly - with society, with enterprises, with business.

On the one hand, this project is promising.

In our opinion, it fits very organically into what is called the development of the digital economy as a whole.

A digital transformation is taking place.

Of course, there should be a transformation of the settlement system, ”stressed Elvira Nabiullina.

It is assumed that the digital ruble will become an additional form of money and will circulate along with cash and non-cash rubles.

This is stated in the report of the Central Bank.

Recall that the Central Bank issues cash in the form of banknotes, each of which has a unique number, and non-cash rubles are entries on accounts in commercial banks.

In turn, the regulator will assign the digital ruble the form of a unique code, which will be stored on a special electronic wallet.

“The only difference will be in the software and hardware part of the service: operations will be an alphanumeric code recorded in the blockchain network.

Users will not notice any practical differences.

Payments in the digital ruble will take place no longer than with electronic payments in the regular ruble, "Yuri Mazur, head of the data analysis department of CEX.IO Broker, explained in an interview with RT.

According to the Central Bank's report, the digital ruble will perform all the same functions as paper and non-cash money.

It can be used as a means of payment and savings, as well as a measure of value.

Meanwhile, the Central Bank urged not to confuse the digital ruble with cryptocurrency.

“Cryptocurrencies do not have a single issuer, as well as guarantees for consumer protection, their value is subject to serious fluctuations.

The digital ruble is an obligation of the Central Bank, implemented through digital technologies and has nothing to do with cryptocurrencies.

It is a fiat currency, that is, a currency whose stability is ensured by the state represented by the Central Bank, ”the Central Bank explained.

Safe tool

The digital ruble is expected to become available to all economic entities: citizens, businesses, financial market participants and the state.

At the same time, it will be possible to use the new currency even in the absence of the Internet.

“In the future, Russians will be able to use digital rubles even when buying everyday goods.

For example, products can be paid using a special application on the phone, where the transaction will be carried out in the blockchain system.

This will be an absolutely transparent operation for both buyers and sellers, "Anatoly Aksakov, head of the State Duma Committee on the Financial Market, explained in a conversation with RT.

  • Validator for payment of travel by bank cards and mobile devices on the bus in St. Petersburg

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According to experts, the introduction of the digital ruble will require the development of a special infrastructure.

However, the Central Bank's initiative will not create additional risks for the financial and banking system, analysts are sure.

Moreover, the use of digital rubles will make transactions safer.

This point of view is shared by Oleg Shibanov, director of the Skolkovo-NES financial center.

“Technically, this expands the tools available to all citizens and companies.

If these are accounts with the Bank of Russia, they will turn out to be even safer than accounts in commercial banks, and therefore may turn out to be attractive to some legal entities.

For citizens, not much will change, because the rates on the accounts of the digital ruble will most likely be close to demand rates, that is, to zero.

Therefore, this is a step towards improving financial stability, ”explained Shibanov.

According to Elvira Nabiullina, the Bank of Russia does not set the task of ousting paper money with the introduction of the digital ruble.

Meanwhile, analysts believe that over time, the new form of the national currency may become more popular among the population and business than banknotes and even non-cash rubles.

“If the digital ruble proves its technological advantages over fiat, for example, in the field of security, it could eventually gain wider acceptance as a means of payment. This can lead to rather drastic changes in the banking services market. Credit institutions will have to introduce technologies for working with the digital ruble in order not to lose their place in the changing market, ”added Yuri Mazur.