Central bank digital currencies (CBDC) could rival the international cross-border payments system SWIFT. This view was expressed by Bank of Russia’s First Deputy Chairman Olga Skorobogatova, according to РБК.
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She noted that many central banks are currently working on their own CBDCs.
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“I think the speed with which regulators have dived into this topic is exactly indicative that within five to seven years a number of countries will launch their own national digital currencies,” Skorobogatova said.
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In her view, with the issuance of CBDCs the SWIFT system may not be needed because of “other technological interactions.” At the same time, it could be used as one of the platforms for digital currencies, Skorobogatova added.
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The Bank of Russia’s deputy chairman, Alexei Zabotkin, noted that to seriously tackle the use of CBDCs for international settlements one will be able only after their practical deployment in certain jurisdictions.
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“We need to ensure that this operates reliably and safely, and that demand for this form of money will indeed be the level we expect,” he said.
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The Bank of Russia is exploring the possibility of issuing a digital ruble.
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Earlier, Olga Skorobogatova said that it will enable reducing the costs of servicing cashless payments.
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For more on how the Russian central bank envisions its own CBDC, read ForkLog’s exclusive.
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Public accessibility and traceability: how the Bank of Russia sees the digital ruble
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