The Central Bank of Russia intends to ensure that the digital ruble can be converted into foreign currency and can be used by non-residents. In a document dedicated to the digitization of the Russian financial sector, the regulator reiterated its concerns about the risks associated with cryptocurrency and insisted that the state-issued digital currency is safer.

Russian banks allow foreigners to access their CBDC

The Central Bank of the Russian Federation (CBR) will facilitate the exchange of digital rubles and foreign currencies and allow users who live outside its jurisdiction to open and use digital ruble wallets.The monetary authority revealed these intentions in its “Main Directions for the Digitalization of Financial Markets, 2022-2024” project Publish recent.

Bank of Russia began to consider central bank digital currency (Central Business District) In 2018, and decided to explore the possibility of issuing one last year. A consultation document was released in October 2020 to collect feedback from financial industry participants. In April 2021, the regulator released the digital ruble concept, outlining its main structure.

In June, CBR formed a digital ruble pilot group with more than a dozen banks and other stakeholders. The authorities hope to complete the prototype of the platform by the end of December and start trials with CBDC in January. The plan is to gradually expand the scope of participants and types of transactions. Forklog and RBC reports cited the draft document.

In the first phase of the experiment in 2022, the Bank of Russia will invite credit institutions and develop consumer-to-consumer business. The Federal Ministry of Finance will join in the second phase with financial intermediaries such as non-bank payment service providers, exchanges, brokers, markets and insurance companies.

Smart contracts and offline modes will also be introduced, as well as the option of converting digital rubles into foreign currencies. CBR claims that offline use of digital rubles will increase people’s availability of financial services.Said it was a uniform cost Will reduce transaction costs. The platform will also be used to make targeted payments to citizens and businesses.

In the document, the Central Bank of Russia once again drew attention to the risks of decentralized digital currencies such as Bitcoin. CBR reiterated its Location Cryptocurrency cannot be used as a means of payment due to its high volatility.

The bank recognizes that there are different regulatory methods, but emphasized the trend of tightening rules related to the encryption field. Bank of Russia also insists that CBDC can meet the demand for secure digital payments.

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