Topic: CBDC in Russia (Read 313 times)

For people to use banking applications, the country needs good internet. You probably have not been to Russia, but even in the western part to the Urals there are a lot of places where there is no Internet, and in Siberia in many places there is not even a mobile connection. This requires huge investments, so as a maximum CBDC can be launched in large cities at the beginning.

So how do they get around this problem? If they want to cover the entire vast Russian territory, they need to spend huge amounts of money to create a suitable infrastructure for using CBDC, and this may take many years.
During this period, will there be two financial systems, one digital and the other monetary?

Also, in those remote areas, people are not accustomed to using the Internet and mobile phones. How will the state be able to convert them to the digital system when they are not familiar with this type of technology?

More than anything, before they delve into fullscale CDBC operations, they should focus more on buiding the technological infrastructure for internet service provision for those interiors without it and also a major case of sensitisation should be considered as many people are used to the regular financial system, mostly, the elderly folks who have spent their entire lives in the conventional financial system.

Russia can achieve whatever it wants to achieve steming from their degree of influence and commtiments to their involvements. I don't consider these few observations much of an implementation problem for them.

In Russia, the majority of the population lives in cities and small towns. The only difference is the population size and, accordingly, the name. In such places there are no problems with infrastructure and during these 2 years people will be trapped with various bonuses. I think this will be a major development priority for CDBC. It will not be possible to quickly add infrastructure to remote villages and settlements with less than 1,000 inhabitants, so I hope the cash will be available for a long time.

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Quote from: Zoomic on July 31, 2023, 03:03:03 AM

For people to use banking applications, the country needs good internet. You probably have not been to Russia, but even in the western part to the Urals there are a lot of places where there is no Internet, and in Siberia in many places there is not even a mobile connection. This requires huge investments, so as a maximum CBDC can be launched in large cities at the beginning.

So how do they get around this problem? If they want to cover the entire vast Russian territory, they need to spend huge amounts of money to create a suitable infrastructure for using CBDC, and this may take many years.
During this period, will there be two financial systems, one digital and the other monetary?

Also, in those remote areas, people are not accustomed to using the Internet and mobile phones. How will the state be able to convert them to the digital system when they are not familiar with this type of technology?

More than anything, before they delve into fullscale CDBC operations, they should focus more on buiding the technological infrastructure for internet service provision for those interiors without it and also a major case of sensitisation should be considered as many people are used to the regular financial system, mostly, the elderly folks who have spent their entire lives in the conventional financial system.

Russia can achieve whatever it wants to achieve steming from their degree of influence and commtiments to their involvements. I don't consider these few observations much of an implementation problem for them.

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Quote from: UmerIdrees on July 27, 2023, 03:44:34 AM

I guess they would plan to keep Bitcoin and crypto illegal but promote and legalize the self-developed CBDC so the power still remains with the government and big financial institutions.

How come Bitcoin / Crypto promotes money laundering and this CBDC is anti-money laundering, Ridiculous !!!

I was afraid that the battle of the government against bitcoin and crypto will become intense and probably crypto will now, little did I know that the government is also scared of crypto dominance. They had no option than to invest in the blockchain but in a highly centralized way. The dilemma is tagging crypto illegal and creating a copy of the illegal and calling it legal.

Now the legal CBDC will fight money laundering. We are watching together.

Quote from: zasad@ on July 26, 2023, 06:23:13 AM

I wrote about the implementation of CBDC in Nigeria, and now I want to describe this process in Russia in detail
https://bitcointalksearch.org/topic/new-world-order-or-cbdc-against-cryptocurrencies-5440827

The same reason Nigerian CBDC (e-naira) failed. The Nigerian central bank launched their e-naira when crypto transaction was illegal in the country. So the idea didn't sell.

Governments are not afraid of cryptocurrencies. Blockchain is like an open ledger where all transactions are stored. It is not the government that needs to be afraid of cryptocurrencies, but the criminals who use cryptocurrencies need to be afraid of the government, because blockchain analysis technologies work more efficiently every year and allow you to get on the trail of criminals and non-taxpayers.

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Quote from: teosanru on July 30, 2023, 11:46:40 AM

which means all are just betting on the fact that it might be great alternative to fiat but actually it's no where better than fiat at any level.

I believe it is a matter of infrastructure building. If they managed to build a solid network that is not prone to hacking and is easy to use, they will likely pivot to it as soon as possible since it offers better control over their fiat transactions.

Quote from: Zoomic on July 31, 2023, 03:03:03 AM

They had no option than to invest in the blockchain but in a highly centralized way. The dilemma is tagging crypto illegal and creating a copy of the illegal and calling it legal.

I mean that should be expected. The government's main goal is to control the economy. I don't see why they will shy away to copy any new tech even if it was used by something that they deemed illegal. Some of them even fund privacy technology, probably to add another point of control over their people.

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Quote from: UmerIdrees on July 27, 2023, 03:44:34 AM

I guess they would plan to keep Bitcoin and crypto illegal but promote and legalize the self-developed CBDC so the power still remains with the government and big financial institutions.

How come Bitcoin / Crypto promotes money laundering and this CBDC is anti-money laundering, Ridiculous !!!

I was afraid that the battle of the government against bitcoin and crypto will become intense and probably crypto will now, little did I know that the government is also scared of crypto dominance. They had no option than to invest in the blockchain but in a highly centralized way. The dilemma is tagging crypto illegal and creating a copy of the illegal and calling it legal.

Now the legal CBDC will fight money laundering. We are watching together.

Quote from: zasad@ on July 26, 2023, 06:23:13 AM

I wrote about the implementation of CBDC in Nigeria, and now I want to describe this process in Russia in detail
https://bitcointalksearch.org/topic/new-world-order-or-cbdc-against-cryptocurrencies-5440827

The same reason Nigerian CBDC (e-naira) failed. The Nigerian central bank launched their e-naira when crypto transaction was illegal in the country. So the idea didn't sell.

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Another country, another fiat onto blockchain dream and hence another CBDC, more and more countries are bringing in CBDC but not even a single country that I have seen has actually made it to the next level in CBDC, which means all are just betting on the fact that it might be great alternative to fiat but actually it's no where better than fiat at any level.

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Quote from: cryptosize on July 29, 2023, 05:39:17 AM

For people to use banking applications, the country needs good internet. You probably have not been to Russia, but even in the western part to the Urals there are a lot of places where there is no Internet, and in Siberia in many places there is not even a mobile connection. This requires huge investments, so as a maximum CBDC can be launched in large cities at the beginning.

So how do they get around this problem? If they want to cover the entire vast Russian territory, they need to spend huge amounts of money to create a suitable infrastructure for using CBDC, and this may take many years.
During this period, will there be two financial systems, one digital and the other monetary?

Also, in those remote areas, people are not accustomed to using the Internet and mobile phones. How will the state be able to convert them to the digital system when they are not familiar with this type of technology?

If we return to the world conspiracy theory, which wants to send all people to a digital concentration camp, then Russia will be given all the necessary technologies despite the sanctions. But the main implementation will begin only in 2025, while testing in some large regions will be during these one and a half years.
In many places in Russia, SMS transfers are very popular. This is done easily by sending an SMS to the bank number with the text: "transfer_recipient's phone number_amount in rubles".
It's not hard to teach anyone.

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I'm sure they will invest in digital infrastructure (fiber optics, mobile/satellite coverage).

If the condition is really that bad, I believe they should focus on that first. It should provide a good base to develop legal regulations if the infrastructures are great. On the other hand, maybe this is one of the reasons why they will limit it to city or other areas with good internet access.

During this period, will there be two financial systems, one digital and the other monetary?

Doesn't thing like this already exist with fiat right now? I'm referring to how people can pay with cash or use their phone to pay with digital wallet apps or PayPal.

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For people to use banking applications, the country needs good internet. You probably have not been to Russia, but even in the western part to the Urals there are a lot of places where there is no Internet, and in Siberia in many places there is not even a mobile connection. This requires huge investments, so as a maximum CBDC can be launched in large cities at the beginning.

So how do they get around this problem? If they want to cover the entire vast Russian territory, they need to spend huge amounts of money to create a suitable infrastructure for using CBDC, and this may take many years.
During this period, will there be two financial systems, one digital and the other monetary?

Also, in those remote areas, people are not accustomed to using the Internet and mobile phones. How will the state be able to convert them to the digital system when they are not familiar with this type of technology?

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Quote from: bittraffic on July 28, 2023, 11:05:33 AM

Quote from: bittraffic on July 28, 2023, 11:05:33 AM

Russia has a large territory and it is impossible to ban cash there in a few years, but many countries have been unlucky in this regard. In countries with a small territory, it is easier to digitize all citizens and make a digital wallet for everyone. In Russia, this will first be implemented where the Internet is massively available, because many people use banking services via SMS.

The whole world is launching CBDC and so the future is all digitalization and we're all gonna be seeing digitalization of assets and Putin knows it.
In wartime, it's easy to make it happen when they are going to have a database of all people in each city. But they will need to incentivize the use of CBDC in order for it to be used by people in the remote area.

The sad part is that it's still gonna be aa wealth transfer and the poor get poorer still.

For people to use banking applications, the country needs good internet. You probably have not been to Russia, but even in the western part to the Urals there are a lot of places where there is no Internet, and in Siberia in many places there is not even a mobile connection. This requires huge investments, so as a maximum CBDC can be launched in large cities at the beginning.

I'm sure they will invest in digital infrastructure (fiber optics, mobile/satellite coverage).

zasad@

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Russia has a large territory and it is impossible to ban cash there in a few years, but many countries have been unlucky in this regard. In countries with a small territory, it is easier to digitize all citizens and make a digital wallet for everyone. In Russia, this will first be implemented where the Internet is massively available, because many people use banking services via SMS.

The whole world is launching CBDC and so the future is all digitalization and we're all gonna be seeing digitalization of assets and Putin knows it.
In wartime, it's easy to make it happen when they are going to have a database of all people in each city. But they will need to incentivize the use of CBDC in order for it to be used by people in the remote area.

The sad part is that it's still gonna be aa wealth transfer and the poor get poorer still.

For people to use banking applications, the country needs good internet. You probably have not been to Russia, but even in the western part to the Urals there are a lot of places where there is no Internet, and in Siberia in many places there is not even a mobile connection. This requires huge investments, so as a maximum CBDC can be launched in large cities at the beginning.

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Russia has a large territory and it is impossible to ban cash there in a few years, but many countries have been unlucky in this regard. In countries with a small territory, it is easier to digitize all citizens and make a digital wallet for everyone. In Russia, this will first be implemented where the Internet is massively available, because many people use banking services via SMS.

Putin is trying everything possible not to make the Russians suffer the hardship from the sanctions since the beginning of the war with Ukraine since last year. I remember before the war started, Russia was not a bitcoin friendly country but after the sanctions, effort have been made to legalize bitcoin so that digital transactions can be opened with countries who are willing to trade with them. And now digital ruble is about to be launched in Aug 1 as optional financial transaction and transfers not investment, like other CBDC I think the whole essence is for convenience and ease for the banking industry.

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