Russia accelerates digital ruble development to recover economy

Alexander Babakov, vice president of the State Duma of Russia, said the creation of the digital ruble is one of the necessary measures for the country to get out of the current crisis. While the central bank digital currency, or CBDC, is already under development, the current situation could accelerate this process.

In addition to the ruble dropping 50% in less than a month, another government concern relates to sanctions imposed by both the US and the European Union and other countries. The most important are the removal from SWIFT and the freezing of money in banks.

At the time, many speculated that cryptocurrencies like Bitcoin could be an escape point for such sanctions. While it is possible for individuals to use such a solution, it is difficult for such an authoritarian government to use a currency with such libertarian values.

Russia CBDC Development

The development of the digital ruble has been studied since 2020 and is already at an advanced stage. According to information from the Central Bank of Russia, a prototype was tested in February with success in transactions between individuals.

Therefore, Russia is one of the closest countries to launching its digital currency as shown in the image below. In the spotlight, China is also well advanced in developing its CBDC.

State of CBDC development by country. Source: Atlantic Council

Digital ruble can cope with crisis

In a statement to the Fed Press, Alexander Babakov, a member of Duna state, said the launch of the digital ruble would be one of the measures for Russia to overcome the current crisis.

“The digital ruble is just one way, along with other measures, to accelerate the delivery of the necessary money to producers and consumers.”

Next, Babakov stated that the main goal is for the state to maintain control over the issuance of money to protect the economy of his country. In addition to citing Bitcoin in his speech, citing recent discussions about its legality, the politician claimed that the digital ruble could accelerate the country’s economy.

“This is the move to the digital ruble when the sale of digital assets allows for quick liquidations and encourages manufacturers to supply the resources, including industrial production.”, stated Alexander Bobakov

Finally, it’s hard to believe that a CBDC can save Russia, after all, the country is economically isolated. In addition to the sanctions, many international companies have already left the country. At the moment, however, there is not much to do.

Source: Live Coins

follow:
\