Bitcoin News and Finance
Idea to Use Digital Ruble as Reserve Currency Circulated in Sanctioned Russia Skip to main content

Idea to Use Digital Ruble as Reserve Currency Circulated in Sanctioned Russia

Idea to Use Digital Ruble as Reserve Currency Circulated in Sanctioned Russia

A call to make the digital ruble a reserve currency has been issued in the State Duma, the lower house of Russia’s parliament. Meanwhile, concerns have been raised in the West that the new incarnation of the Russian fiat may be employed to evade sanctions that have been isolating the country.

Digital Ruble to Serve as Reserve Currency, Lawmaker Suggests

In the face of mounting Western penalties, officials in Moscow have been mulling over ways to circumvent restrictions that have already limited Russia’s access to its foreign reserves and the global financial market.

Sergei Mironov, who leads the opposition ‘A Just Russia’ faction in the Duma, urged the federal government, the central bank, and the operational headquarters on countering sanctions to introduce the digital ruble, Russian media and Forklog reported.

The high-ranking parliamentarian has been quoted as saying that the goal of the initiative is to issue the central bank digital currency (CBDC) for specific purposes like financing of housing and other construction projects, as well as development of production and transportation infrastructure.

“The digital ruble should become a full-fledged investment and reserve currency for Russia,” Mironov elaborated. The deputy believes the CBDC will provide the Russian economy with needed funding without boosting inflation. The digital rubles cannot be deposited abroad or used for non-intended purposes, he added.

Western allies fear Russia may use cryptocurrencies, including the digital version of the ruble, to evade sanctions imposed over its invasion of Ukraine and have taken steps to close the loopholes. Recent statements by another lawmaker, and member of the crypto regulatory working group, Alexander Yakubovsky, indicated that Russia is interested in using digital currencies to restore its access to global finance.

The Central Bank of Russia (CBR), a strong opponent of legalizing cryptocurrencies, has been actively developing the digital ruble project. The monetary authority began contemplating a CBDC three years ago. A consultation paper was published in October 2020 and in April 2021, the bank released a digital ruble concept outlining its principal architecture.

Testing of the digital ruble platform began this year with the CBR announcing the first complete transactions between individual wallets in mid-February. A dozen Russian banks will participate in the trials expected to continue throughout 2022. Bank of Russia insists its digital currency will create new opportunities for Russian citizens, businesses, and the state.

The Russian Federation has also been trying to limit its dependence on the U.S. dollar. Last October, the Ministry of Foreign Affairs hinted that it’s possible to partially replace the greenback in Russia’s currency reserves and trade settlements with other currencies and even digital assets in the future.

Do you think Russia will be able to use the digital ruble as a reserve currency and to evade sanctions? 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