Russian Prosecutor-General says the digital ruble could play a key role in public procurement

The digital ruble, being developed by the Bank of Russia, will increase the transparency of public procurement. This was stated by Russian Prosecutor-General Igor Krasnov, пишет «Интерфакс».

In less than two years, the prosecutor’s office has identified over 300,000 violations related to public procurement. A significant portion of them relates to improper actions in the awarding of government contracts and the acceptance of completed works.

«There were also direct incursions on budgetary funds», Krasnov said.

The new financial instrument, in the prosecutor-general’s view, could improve the situation.

«We are deliberately discussing with the Central Bank the possibility of introducing the digital ruble. I am convinced that the possible introduction of the digital ruble will increase the transparency of all these procurements», he said.

According to report of the Bank of Russia, the digital ruble will be implemented as unique tokens, which will allow tracking the chains of funds movement within the system and enable targeted spending.

As noted, the Bank of Russia and the Ministry of Finance confirmed plans to launch the digital ruble as a third form of money by 2030.

Testing of the new financial instrument will take place across 12 banks in the first quarter of 2022.

Elvira Nabiullina, the head of the Bank of Russia, said that the domestic CBDC would become a full-fledged replacement for cryptocurrencies for Russians.

At the same time, deputies of the State Duma pointed to the risks the digital ruble poses to the Russian financial sector and the information-security sphere.

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