The digitization of currencies continues to gain momentum around of the world, with Russia now slating to unveil a digital version of its ruble before the end of the decade.
According to the Russian finance ministry, the Central Bank of Russia is embarking on a major virtual currency project, and will be digitizing the ruble before the end of 2030. The digital ruble will be the third form of currency in the country, and will coexist alongside cash and non-cash rubles. Contrary to other virtual currencies such as bitcoin, the digital ruble is expected to be relatively risk-free, as it will be backed by the country’s traditional currency.
Once implemented, the central bank promises that the digital ruble will help alleviate some of the added costs of services for both individuals and businesses, as well as help broaden payment systems, boost competition, and accelerate the spread of innovative financial infrastructure. However, it appears that advancement of the digital ruble is as far as the central bank is willing to go in terms of digitizing its monetary system; last week, the Kremlin announced that Russia will not be recognizing bitcoin and other currencies anytime soon, as it could damage its financial system.
Information for this briefing was found via the Russian News Agency. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.