Russian MP lawmakers are still warning that the introduction and use of the digital ruble could pose serious risks. The competition pressures on banks could increase and new information security challenges may emerge.
The development of a digital legal currency in Russia is currently underway. It poses certain risks to the financial sector. Legislators hope that central banking will immediately examine the project and take the correct decision. Members of the State Duma’s financial markets committee, which is located in the lower house, reviewed the project. They warn that the country’s financial system could face challenges that are unprecedented by the adoption of the digital Ruble.
Russian MP Warning That The Ruble of the Digital Market Project Is a Threat
Conclusion This is a response to the “main direction of 2024 monetary policy” proposed by the Russian Central Bank. This document discusses the possibility of introducing a national currency digitally in other areas of the Moscow government’s monetary policy.
The new Russian currency, the third form of the ruble following cash and banknotes, would increase competition in the banking sector, the delegation expressed concern. This could reduce the profits of financial institutions, and increase the influence of the state in the industry.
The Digital Programmability Act introduced new risks in information security, among others. According to the report, Russian banks should examine macroeconomic stability and threats to the banking industry. To prevent this unwelcome risk becoming a reality, regulators should take decisive actions to protect themselves in advance.
While lowering the cost of payment services. And then, the conclusion states that the Duma Commission “actively examines the analysis of digital currencies and believes it will be interesting for us to analyze the effect of global transactions.”
This is due to Russians preferring cashless payment options – 75% has been achieved in the past seven years and the increasing popularity of cryptocurrencies. CBR and other agencies are responsible for serving Russian MP warning for citizen. Officials will amend 13 Russian MP and regulations in order to make warning the digital currency compatible with the central bank.
The Bank of Russia created a pilot group for digital rubles that included more than 12 banks and other stakeholders in June. The authorities plan to create a prototype platform by December 2021, and then begin trials for CBDCs in January 2022. Elvira Nabiullina, the head of the bank recently supported cryptocurrencies and stablecoins.