Bank of Russia to Pilot CBDC in April - page 2.

Lucius

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Quote from: NeuroticFish on February 20, 2023, 02:36:57 AM

Russia desperately needs means for the various countries pay for the gas and oil they still manage to sell. And if those payment methods are under the radar, even better.

Russia has been talking about digital currency for a long time, but I don't think it will be some kind of payment method that will help them trade with other countries - because realistically, despite all the sanctions, they manage to trade with countries like China, India or Iran.

Quote from: NeuroticFish on February 20, 2023, 02:36:57 AM

And related to the population.. we see most of the Russians do whatever they're told to do. So CBDCs for population will be a great success (if no notable errors will be there and some hackers will become billionaires overnight).

It's no secret that CBDC only means more control over finances and the loss of all privacy for ordinary people, so I think that's the main goal. Ordinary people will have the least benefit from it, but as you say, in that country, ordinary people are not asked for their opinion, similarly to China.

Ucy

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It likely became necessary due to the sanctions and the need to easily trade with foreign countries without using the dollars.
Well, it's nice this is going through the pilot phase. It's better to learn from there than implementing it fully with little/no experience or knowledge.

It's important they assume that the sanctions will never be lifted and continue to develop ways to survive and thrive in it. I however don't think Russia will let them take back the regions that have been annexed, which will be against their conditions or requirements for lifting parts of the sanctions.

NeuroticFish

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Russia desperately needs means for the various countries pay for the gas and oil they still manage to sell. And if those payment methods are under the radar, even better.
However, a digital Ruble is imho not the best way forward, since those states will clearly be wary about a coin controlled by Russia both as infrastructure and value. Bitcoin or Monero would have been much better suited for the job.

And related to the population.. we see most of the Russians do whatever they're told to do. So CBDCs for population will be a great success (if no notable errors will be there and some hackers will become billionaires overnight).

avikz

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Quote from: o48o on February 19, 2023, 06:16:59 PM

I am really skeptical if they would make any sensible pilot program working.
But even if they would get it working i wonder if anyone would want to touch it as any proper CBDC needs KYC:ing and most likely people from "unfriendly" countries and members of opposition, people with wrong opinions about Kremilin would instantly get their CBDC rubles frozen and confiscated.

That's what the governments want around the world! They want to have absolute control on their citizens financial data. Fiat still has some certain degrees of anonymity. But with CBDC, that little bit of anonymity will be permanently gone! Government can do whatever they want! It can be anything from freezing funds to arresting people over high value transactions.

The first country to successfully pilot CBDC was China. One of those authoritarian governments. So the gameplan is very clear!

_BlackStar

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I don't know how likely it is that the Russians succeed in developing their planned CBDC and become something new that is of interest. Several other countries have stated the same, and we will likely hear more of these announcements from other countries if Russia and a few others have enough success with CBDCs.

Of course I don't think this has anything to do with Russia's current political situation, but they may be trying to take advantage of the technological developments of the financial system. CBDC will probably be very popular because it is the same financial system as fiat even though it is developed differently. It will be interesting to know how this CBDC supports more people getting involved in the crypto space in the following years.

Kakmakr

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I do not know why so many people are so skeptical that Russia might be able to pull this off, because they have some of the most capable hackers in this world. Roll Eyes

(I am not Russian and I am not a Russian supporter, but I think they have a good chance of doing this)

We can expect huge resistance against all other Crypto currencies, once this is in place.. because Vladimir Putin are very good at eliminating the competition. (sometimes he even use poison) Tongue

Uruhara

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This means that there are already 2 countries that will conduct CBDC trials in April. namely Russia and Japan.¹
it seems that several countries are indeed motivated to develop and test CBDCs more quickly in 2023. And the Russian state will certainly be even more massive in this regard. because it was motivated by various sanctions imposed on Russia.²

Maybe in this case, Nigeria has already taken the initial step of adopting CBDCs than other countries. although it is said that the adoption rate of CBDC there is running slowly. but it looks like it's going pretty well.³

But in terms of the speed at which digital money adoption (CBDC) spreads it looks like China will have the upper hand. because China has always had strong ambitions and always wanted to be ahead of anything. including in the progress of CBDC adoption they are doing on their currency i.e. Digital Yuan (e-CNY)⁴.

but in my own country, namely Indonesia, it seems that there is still no further news regarding the development of this CBDC. so of course I doubt whether there will be a trial run this year.

but at least hundreds of countries are currently competing in the development of CBDCs. and let's see if the trials that Russia and Japan are doing will be successful. because these two countries seem to be conducting trials in the same month and year, namely April 2023.

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Reference :
1. https://www.liputan6.com/crypto/read/5211451/jepang-bakal-luncurkan-uji-coba-yen-digital-pada-april-2023?source=amp-baca-juga
2. https://pintu.co.id/news/21678-alasan-rusia-adopsi-cbdc-di-tengah-perang
3. https://id.beincrypto.com/pengguna-cbdc-nigeria-baru-capai-05-persen-dari-total-penduduk/
4. https://id.beincrypto.com/sejumlah-negara-percepat-adopsi-cbdc-pada-tahun-2023/

Argoo

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Quote from: o48o on February 19, 2023, 06:16:59 PM

I am really skeptical if they would make any sensible pilot program working.
But even if they would get it working i wonder if anyone would want to touch it as any proper CBDC needs KYC:ing and most likely people from "unfriendly" countries and members of opposition, people with wrong opinions about Kremilin would instantly get their CBDC rubles frozen and confiscated.

Russia has been living under ever-increasing international sanctions for almost a year now, and this leaves an imprint on all aspects of the state’s activities, and above all its banking system, given that almost all Russian banks are now disconnected from the SWIFT international payment system. Therefore, they are looking for a way out of the difficult current situation that arose due to the military attack on Ukraine.
At the same time, if the emergence of CBDC in other countries is a completely new and relatively risky project, then in Russia it is doubly risky. And yet little is known about him. Even whether it will use blockchain technology. Of course, the digital ruble can be used in international settlements where it is difficult to do this due to the shutdown of SWIFT. But let's see how it will be in practice.

Hispo

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Is not it Russia a country whose internet access is not good for the population who live in the center of the country or in the far east of the country?

I assume if it is the case, the implementation of the CBDC in Russia will only be a reality for those who live in the western part of the country and in big enough cities.

Also, the Venezuelan Petro was not a CBDC, it was some sort of centralized token allegedly backed by oil.

o48o

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I am really skeptical if they would make any sensible pilot program working.
But even if they would get it working i wonder if anyone would want to touch it as any proper CBDC needs KYC:ing and most likely people from "unfriendly" countries and members of opposition, people with wrong opinions about Kremilin would instantly get their CBDC rubles frozen and confiscated.

Hydrogen

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Quote

Digital ruble payments will be launched for retail purchases and peer-to-peer transactions, a central bank official said.

The Bank of Russia's central bank digital currency (CBDC), the digital ruble, is ready for its pilot phase, said the bank's deputy governor, Olga Skorobogatova, on Friday.

The project will be launched for peer-to-peer transfers between individuals and for retail purchases, Skorobogatova told journalists during a fintech conference in Russia. "The pilot will work on real operations for real people, but only for a limited number of them, with the 13 banks that have signaled they're ready," she said, according to Russian news agency TASS.

The central bank will pilot the CBDC with sets of selected clients, she added. After the pilot, the Bank of Russia will decide on the ways to expand the project, according to TASS.
Russia's central bank first proposed a CBDC project in October 2020 when it published a consultation paper outlining potential designs of the digital ruble. In later comments, the bank said the project can help decrease the Russian economy's dependency on the U.S. dollar and mitigate the impact of foreign sanctions on the country since its invasion of Ukraine.

The pilot was initially expected to go live in 2021 but provoked some concerns in the Russian banking community that rolling out infrastructure for the digital ruble will be burdensome for lenders and make the banking system more centralized and less diverse. The Bank of Russia later promised to modify the concept so that it doesn't hurt the traditional system.

https://www.coindesk.com/business/2023/02/17/bank-of-russia-to-pilot-cbdc-in-april/

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Interesting.

Quote

Russia's central bank first proposed a CBDC project in October 2020 when it published a consultation paper outlining potential designs of the digital ruble.

From the initial proposal to pilot program phase of russia's CBDC program in 2020, it appears 3 years have passed.

From pilot phase to full deployment of russia's CBDC, an additional span of years will be required. It is possible the war in ukraine will end, before russia's CBDC reaches mainstream.

It is known russia has sought to build a banking alternative to the SWIFT system since 2014. We are now seeing development time measured in a span of years with some CBDCs. Venezuela's petro CBDC which still has not materialized despite its initial proposals 5 years ago may serve as a good example.

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