Bitcoin News and Finance
Digital Ruble Poses Risks to Financial Sector and Security, Russian Lawmakers Warn Skip to main content

Digital Ruble Poses Risks to Financial Sector and Security, Russian Lawmakers Warn

Digital Ruble Poses Risks to Financial Sector and Security, Russian Lawmakers Warn

Russian parliamentarians have cautioned against risks associated with the introduction of a digital ruble. Among them are the likely increase of competition pressure on banks and new challenges that may arise in the field of information security.

Financial Market Committee Sees Threats in Digital Ruble Project

Russia’s digital fiat, currently under development, brings certain risks that lawmakers want the central bank to carefully examine. The implementation of the digital ruble may pose a challenge for the country’s financial sector, members of the important Financial Market Committee at the State Duma, the lower house of parliament, have noted after deliberations on the project.

The conclusion comes in response to the “Main Directions of Monetary Policy Until 2024” presented by the Central Bank of Russia (CBR), crypto news outlet Forklog reported this week. The document covers the prospects for the launch of a national digital currency among other aspects of Moscow’s government monetary policy.

The deputies are worried that the new form of the Russian currency, the third incarnation of the ruble after cash and bank money, will increase competition in the banking sector. This could hurt the profits of financial institutions and significantly increase the role of the state in the industry.

Furthermore, the introduction of a digital, programmable fiat carries new kinds of risks — in the field of information security, for example. The authors of the report have advised Bank of Russia to analyze the threats to macroeconomic stability and the banking sector. They recommend that the regulator prepare response measures in advance, in case these risks materialize.

At the same time, the Duma committee expects the digital ruble to ensure fast, simple, and secure payments while reducing the cost of payment services. It “positively assesses the analysis of the introduction of digital currency and believes that it would also be interesting to analyze the impact of the spread of cryptocurrencies in global transactions,” the conclusion reads.

With Russians increasingly choosing non-cash payment solutions — these have reached 75% in the past seven years — and with the growing popularity of cryptocurrencies in mind, the CBR and other institutions have seriously taken on the task of offering Russian citizens a government-controlled digital currency. Officials are planning to amend 13 Russian laws and codes to accommodate the central bank digital currency.

In June, Bank of Russia formed a digital ruble pilot group with the participation of over a dozen banks and other stakeholders. The authority plans to complete the platform’s prototype in December 2021 and start testing the CBDC in January 2022. The head of the bank, Elvira Nabiullina, recently stated that the digital ruble will give Russians what they need as a state-issued alternative to other forms of electronic money including decentralized cryptocurrencies and stablecoins backed by foreign fiat.

Do you think CBDCs like the digital ruble pose serious risks to the traditional financial sector? Share your thoughts on the subject in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory