Sooner or later, all central banks will think about issuing digital currency
Crypto Ruble will give Russia at least three advantages
The creation of a national digital currency involves many risks
International consortium of news organizations developing transparency standards.
After much deliberation, the Bank of Russia nevertheless took up the issue of issuing the central bank’s digital currency (CBDC). The editors of BeInCrypto decided to ask experts how the crypto-ruble can help the country, and whether Russians really need a digital version of the usual fiat.
Tatiana Maksimenko, official representative of the Garantex cryptocurrency exchange believes that sooner or later all central banks will have to think about digital currency.
“On the one hand, this is a forced measure, and on the other, it is a completely organic evolution of the financial system, which, thanks to technological development, has received tools and opportunities for its improvement,” the expert noted..
The crypto-ruble, in her opinion, will help the Central Bank of Russia to make the financial infrastructure more transparent and cheaper for its users.
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“And first of all here we are talking about borrowers from among legal entities. Thanks to CBDC, paper notes and coins may be a thing of the past due to a new financial instrument – Central Banks Digital Currency (CBDC). As … More, they will have the opportunity to take out cheaper loans, and in Russia, where the cost of lending to a business is very high, this is a very urgent task, ”Tatyana Maksimenko explained her point of view.
The expert also noted that it will be more convenient for the regulator to track operations with the help of CBDC. This, in her opinion, will help to avoid holes in the balance sheets of commercial banks. The regulator, according to Tatyana Maksimenko, will be able to see the emerging problems at a stage that does not require multibillion-dollar infusions and expensive readjustments.
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Russia’s position on the cryptocurrency legality map. Data: CoinDance
Financial Advisor, Director of E.M. FINANCE Evgeniy Marchenko, in turn, noted that the creation of electronic money is dictated by the spirit of the times. Global digitalization, in his opinion, prompts the search for new solutions in the banking sector. The introduction of the electronic ruble, as the expert noted, may become the factor that will radically change this area..
“The Central Bank has already started talking about the possibility of entering digital currency. It is planned that the electronic ruble will be a unique digital code and will become a universal means of payment, which will be available to any user of an electronic wallet in any corner of the country, ”explained Yevgeny Marchenko.
At the same time, the expert noted that to launch the electronic ruble, the Central Bank will have to create a completely different financial infrastructure..
Chart of the US dollar / Russian ruble pair. Data: TradingView
CEO of Investonomics project Andrey Khodosok also sees the benefits of issuing the national cryptocurrency of the Russian Federation. Russia, in his opinion, needs a crypto-ruble, because it will open up 3 advantages to the country and its economy:
- The first global advantage of the cryptocurrency over the ordinary ruble, in his opinion, is the absence of dependence on Western financial technologies. For example, now one of the methods of pressure on Russia discussed in the West, as the expert noted, is to disconnect from Swift.
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“Everyone understands that if this happens, it will lead to huge problems. The cryptocurrency is not afraid of this. He does not need Swift, he does not need verification, confirmation and transaction centers. In terms of the independence of the Russian payment system, the crypto-ruble is a completely unique means of payment. And for this reason alone, it should be used “, – said Andriy Khodosok.
Chart that reflects the share of the ruble in the calculations of the foreign trade sector and the forecast of changes in the indicator for the coming years. Data: Statista
- The expert believes that the second important reason for introducing the crypto-ruble into circulation is the possibility of reducing the corruption component..
“Crypto-ruble payments will be as transparent as possible. It will be possible to track absolutely all transactions, all wallets will be verified. Corruption in such a situation will be significantly limited, which will have a positive effect on the effectiveness of the Russian state and will be useful for the entire Russian society, “Andrei Khodosok explained his point of view..
- The third reason, he believes, is that the maintenance of the crypto-ruble will contribute to the expansion of the ruble zone.
“Crypto enthusiasts around the world using cryptocurrency will get another handy tool. But, unlike ordinary cryptocurrencies, the Russian crypto-ruble will be backed by guarantees from the regulators of the Russian Federation. This situation will distinguish it favorably from competitors. The same applies to crypto exchanges, crypto exchanges and other companies that need a stable and secure cryptocurrency. As soon as Russia releases the crypto-ruble, it will become widespread and will be used all over the world, “the expert noted.
As a result of the reasoning, Andrey Khodosok came to the conclusion that the crypto-ruble of Russia is needed and will be useful for the whole society and the state..
Entrepreneur, financier, member of the Association of Professional Directors of IDA Nikolay Neplyuev, in turn, drew attention to the fact that at this moment in time, the creation of a crypto-ruble is more a matter of prestige, and not a rational economic move.
“The fact is that such a reform is very laborious and costly. According to experts, its implementation in the existing realities will take at least two years and more than 4 trillion rubles, according to the most conservative estimates. But, since we are now experiencing an international economic crisis, and the pandemic problem has not yet been finally resolved, but only localized and continues to cause damage, and the Russian budget is in deficit, the introduction of the crypto-ruble looks like an exorbitant luxury, “the expert noted..
Nikolai Neplyuev also noted that the creation of an electronic national currency is inevitably associated with a huge number of risks. This direction, the expert pointed out, is relatively new and many “pitfalls” have not yet been studied in practice. At the same time, the advantages are relative and hypothetical, not promising a special economic breakthrough or specific marginality. Therefore, Nikolay Neplyuev is sure, at this point in time, the development and creation of a crypto-ruble is impractical.
Changes in the inflation rate in Russia. Data: Statista
However, in the future, he believes, this will certainly have to think about in order to meet global economic criteria. Now, the expert noted, China is engaged in the creation of its own national cryptocurrency. The United States is also concerned about this issue, but, in his opinion, America is still far from the implementation of the project. In particular, the country is considering an alternative to the cryptodollar in the format of the Facebook Libra project.
“Russia will adjust its actions with an eye to these projects and after solving more pressing issues for itself,” – this is how the expert concluded his thought.
We will remind, earlier information appeared on the network that the Sberbank team will be engaged in the release of the crypto-ruble.
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