Bank of Russia may charge for CBDC transactions: Reports

Reportedly, the Central Bank of Russia is planning to charge their citizens to use the transactions in the Central Bank Digital Currency (CBDCs).

At present, almost 90% of the leading Central banks of the global economy are working in the development and implementation of the Central Bank Digital Currency (CBDCs). The main purpose of the CBDCs implementation is to bring advancement and modernization in the traditional payment system network with the adoption of blockchain technology. But the latest report indicated that the Russian Central Bank may hammer on the initiative of the CBDCs through the introduction of a transaction charge system. 

According to reports, Kirill Pronin- director of the financial technologies department at Russian Central Bank- said that Russian CBDCs( Ruble) will charge fees for the transactions but the charge fees will be low over the wire banks transfer charges. 

Kirill asserted that citizens don’t need to take tension in this initiative because the charge in the digital Ruble will be very less over Russia’s Faster Payments System (FPS). 

Russia’s Faster Payments System (FPS) is a faster bank fund transfer service of Russia, which allows the Russian citizens to transfer funds with very high speed in between the banks. However, this service of the Russian Central Bank is free, for the fund transaction up to 100,000 rubles ($1,360). This service was launched two years ago to bring the payment system faster and better than the traditional transaction speed. 

Many experts responded on this matter and claimed that there are huge chances that people will not easily move forward to go with the Russian CBDCs if they will get charged. Because if people will get a fees less transaction facilities then why will they go with those services, which charge a fee? 

Speaking before the Russian State Duma on Thursday, the governor of the Russia Central Bank- Elvira Nabiullina- stated that CBDCs adoption will bring better changes in the country and it will help to replace the private currencies ( cryptocurrencies). And also he stated that the government will not push the adoption of crypto. However, crypto is legal in Russia since 1 January 2021 under tradable assets only. 

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