FSB oversight cited as guarantee of digital ruble security by the central bank

The security of Russia’s national digital currency is assured at the very highest level, as its development has been overseen by the FSB. This, according to Denis Polyakov, deputy director of the Central Bank’s National Payment System Department, said that the platform will be subjected to the strictest security protections.

According to him, the digital ruble platform will be subject to the “strictest” security protections. He added that no existing CBDC offers such a level of security.

“To protect users, a special software module has been created that encrypts all messages with the latest cryptographic protection methods,” explained Polyakov.

The central bank official also noted that access to the digital ruble will be available through the app of any Russian bank.

“From a design perspective, the digital ruble provides a greater degree of security for citizens than other technologies. Moreover, if funds remain on the platform, the possibility of returning to citizens what scammers stole is much higher than if the situation involved traditional currency,” he said.

Anatoly Aksakov, head of the State Duma Committee on the Financial Market, added that Russia’s CBDC is “coloured money” that the central bank can track at any moment.

On 11 July, the State Duma and the Federation Council approved the law on the introduction of the digital ruble. The document immediately passed the second and third readings. The main provisions will take effect on 1 August 2023.

Earlier, Aksakov said that CBDC operations could be programmed for specific goals. The feature can be used in citizens’ daily lives, as well as in planning the state budget.

However, Vladimir Nazarov, director of the NIFI at the Ministry of Finance, said that it is impossible to guarantee absolute protection from theft of the national digital currency.