Digital ruble could be still vulnerable to fraud Russian banks warn

Contents

The Ministry of Finance of the Russian Federation revealed the main disadvantages of the digital ruble
CONTENT

  • The digital ruble may become highly volatile, according to the Ministry of Finance

  • A virtual currency will help avoid sanctions in the long term

  • With the help of the digital ruble, the Central Bank intends to get rid of shadow cryptocurrency miners

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The Ministry of Finance is not against the emergence of a virtual national currency, but warned of significant shortcomings of the potential digital ruble

The Ministry of Finance of the Russian Federation (Ministry of Finance of the Russian Federation) is actively exploring the possibility of issuing a digital national currency. The press service of the Ministry of Finance told Izvestia about it.

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The regulator is concerned about the use of the digital ruble in illegal activities. In addition, he refers to the lack of collateral and the high volatility of this type of currency. It is noteworthy that earlier the Central Bank of the Russian Federation announced public consultations on the development of the digital ruble.

The Ministry of Finance of the Russian Federation revealed the main disadvantages of the digital ruble

The Ministry of Finance did not receive an invitation for consulting, the press service reported.

In this context, it should be noted that the digital national currency, as planned by the Central Bank of the Russian Federation, will be pegged to the traditional ruble, which should automatically make it stable and secured..

Reducing dependence on the dollar

Despite criticism of the potential digitalization of the economy, the Ministry of Finance also saw the benefits of the virtual ruble. Among the advantages, the regulator saw “reduced dependence on the dollar”, which in the long term should reduce the effect of sanctions. In addition, the Ministry of Finance expects a decrease in commission costs for making payments, as well as the volume of burden on financial institutions.

The Ministry of Finance warns that the national digital currency must be strictly secured, and transactions must be closely monitored in order to prevent a worsening of the economy and “growth of social tension.”.

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According to the head of the laboratory “Research of the monetary system and analysis of financial markets” of the PRUE. G.V. Plekhanov Denis Domashchenko, with the help of the digital ruble, the Central Bank of the Russian Federation wants to squeeze all competitors from the digital market, including shadow cryptocurrency miners:

“Everything that began to develop with bitcoin is categorically not satisfied with the central banks of all countries..

The Ministry of Finance of the Russian Federation revealed the main disadvantages of the digital ruble

They are trying to lead this process and bring it under a single regulatory regime “.

Prohibitionist

The skeptical attitude of the Ministry of Finance to the cryptocurrency market has been known for a long time. At the end of September, for example, the Ministry of Finance offered to punish up to three years in prison for failure to declare a cryptocurrency wallet with a turnover of over 1 million rubles per year.

President of the Russian Association of Cryptocurrencies and Blockchain (RACIB) Yuri Pripachkin has already warned that under “prohibitive and absurd norms” digital business will be in a position to search for foreign jurisdiction for its activities.

As a reminder, on October 14, 2020, the Central Bank of the Russian Federation initiated public consultations on the issue of the digital ruble.

The Ministry of Finance of the Russian Federation revealed the main disadvantages of the digital ruble

The regulator believes that the digital ruble will help “reduce the cost of settlements and increase financial availability”.

Find out what the experts of the cryptocurrency market think about the release of the digital ruble from our special material.

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