Despite President Vladimir Putin’s request that his government and central bank work out an uniform. Regulatory framework for crypto assets rather than a complete prohibition, no agreement yet reach. The Bank of Russia has now begin implementing digital ruble testing. The announcement coincides with the central bank’s plans to launch the digital ruble project’s pilot phase in early 2022.
Digital Ruble Testing Commence
According to an announcement made on Tuesday, Russia’s central bank has officially begun pilot tests of its digital currency (Feb. 15). The first central bank digital currency (CBDC) transfers between Russian individual complete successfully, according to the bank.
Three of the pilot group’s banks have already joined to the digital currency platform, with two of them successfully completing. A full cycle of digital ruble transactions between customers via mobile banking apps. Users must first open wallets on the CBDC platform using mobile applications. As well as convert their non-cash fiat money into the digital ruble, before transferring tokens to other consumers.
According to the press release, the central bank would be in charge of both issuing digital rubles and operating the CBDC platform. Clients will transact through financial institutions on the site. The fact that “you will be able to access your digital wallet using the mobile application of any bank that services the client” distinguishes the digital ruble testing.
During the second stage, the Bank of Russia plans to examine the usefulness of the digital ruble as a payment method for products and services. Example public services, smart contract execution. And then, contact with the Federal Treasury after the customer-to-customer transactions.
Olga Skorobogatova, the first deputy head of Russia’s central bank, commented on the situation, saying:
"The digital ruble platform testing offers individuals, businesses, and the government a new chance. We intend to make digital ruble transfers cheap and available to citizens in any region of the country, while businesses will save money and have more options to develop innovative products and services. The state will also obtain a new tool for targeted payments and budget payment administration."
According to the announcement, the Bank of Russia also aims to establish digital ruble testing payments in areas without internet connection. As well as the ability for non-Russians to make transactions with the CBDC.
Crypto Regulatory Deadlock Continues In Russia
As previously stated, Russia is now at a standstill when it comes to crypto regulation. President Putin then pushed the competent officials to reach an agreement. Stating that Russia had particular advantages in bitcoin mining due to the country’s abundant electricity.
The Bank of Russia proposed a ban on cryptocurrency mining and transactions last month, citing the high energy consumption of these operations. The Ministry of Finance, on the other hand oppose, claiming that it was more important to allow these expanding digital assets to develop than to regulate them.
However, it has now been reported that Elvira Nabiullina. The head of the Russian central bank, met with Finance Minister Anton Siluanov and Deputy Prime Minister Dmitry Grigroenko. On Tuesday but was unable to reach an agreement on how to govern the crypto economy.
In other words, there was no common ground developed between the Bank of Russia’s crypto concerns and the government’s stance of cryptocurrency legalization. Last week, Nabiullina stated that the central bank will continue to persuade the government of the grave threats that crypto poses.