The Russian Ministry of Finance is studying international experience in issuing and regulating digital currencies. Creating such an instrument could, among other things, reduce dependence on the dollar, but there are risks to its use. The ministry told Izvestiya.
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Among the advantages of using a digital currency, besides reducing dependence on the dollar—and thus exposure to sanctions—the Finance Ministry highlighted lower transaction costs and expanded possibilities for cross-border payments.
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The risks of digital currencies, according to the Finance Ministry, include high volatility, lack of backing, and their use in illicit activity.
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“To prevent possible destabilisation of the economy and rising social tensions, the digital ruble must be backed, and transactions using it must be controlled,” the ministry said.
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If a digital ruble is issued, a new payment infrastructure would need to be created, and its framework should be based on FATF recommendations for the regulation of digital assets, the Finance Ministry noted.
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Earlier, the Bank of Russia allowed the creation of a digital ruble and published a report dedicated to it.
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A final decision on launching the new instrument has not yet been made.
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For details on how the Bank of Russia sees the digital ruble, see ForkLog’s exclusive.
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Accessibility and traceability: how the Bank of Russia sees the digital ruble
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