The Bank of Russia, the country's central bank, might start testing its own version of digital the Russian ruble at the end of 2021, Governor Elvira Nabiullina said during a special press-conference.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
Nabiullina admits that the possibility for issuance of the digital ruble is very real, and the pilot testing might happen at the end of 2021 already. The watchdog's head added that the Bank of Russia does not set the task of ousting fiat money with the introduction of the digital ruble.
This will be the third form of money in addition to cash and non-cash, she added. The digital ruble will reportedly be stored on a special card that has nothing to do with a bank account.
"We find the project promising. It fits into the development of the digital economy," Nabiullina said.
The Bank of Russia's Chief notes that citizens and businesses will choose in which case which type of money is more convenient for them. The spread of the digital ruble will be smooth, people and businesses will keep an eye on it, Nabiullina added.
Earlier in October, the Bank of Russia announced that the government plans to issue its own central bank digital currency (CBDC). It is expected that the CBDC would make payments "faster, more simple and secure."
In the meantime, Fabio Panetta, Member of the Executive Board of the European Central Bank (ECB), outlined at the ECB Conference "A new horizon for pan-European payments and digital euro" a number of scenarios where usage of a digital euro could be beneficial.
According to Panetta, digital currencies could be vital if people would become reluctant to use cash or other electronic payment methods could become unavailable "owing to natural disasters."
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.