Russia’s Digital Ruble Model to Get Bank-Friendly Redesign

Russia’s central bank will present a modified concept for a possible central bank digital currency (CBDC) later this year following discussions with banks.

• Most institutions favor a two-level model for a digital ruble in which banks open wallets on clients’ behalf on the central bank’s platform, Bank of Russia chair Elvira Nabiullina said Thursday, according to an RT report.
• Discussions around the creation of a state-backed digital currency started in October, but concerns were raised by commercial banks that liquidity could be drained from their balance sheets as a result.
• The new model will be presented for discussion with the public and stakeholders at the start of this summer, Nabiullina said.
• Launching and testing a special platform would be the next step, according to RT’s report.
• While the Bank of Russia is pushing on with its own digital currency plans, public crypto assets are set to be ruled out as a legal means of payment.
• Russia’s State Duma is currently introducing new legislation that would also recognize cryptocurrency as property for tax purposes. The bill passed its first reading Wednesday.

See also: Russian Mobile Operators Eye Payments Services, Wallets for Digital Ruble