Russia accelerating CBDCs development, here is why?

The Russian Central Bank is accelerating the development of Central Bank Digital Currency (CBDCs) because of the risk of getting terminated from the global financial economy. 

In the present time dominating Central Banks have their hands in the network of the Global Economy with the US and EU. And Russia is one of them. Right now the Russian Central Bank is at a hurdle because of the threat to get terminated from the global financial economy, whatever the reason may be. 

As per reports, Moscow is planning to invade Ukraine, with its efforts to develop CBDCs fastly. But reportedly, American officials are planning to counter the action of Moscow against Ukraine. 

Reports also confirmed that American officials are working on the high-level sanction package, in which Russia is not included. 

If Russian banks get banned from the  SWIFT interbank system then these banks will not be able to access the liquidity of the dollars, euros, or yen. 

So to avoid huge issues because of the US and EU financial sanction, Russian CBDCs is under very high acceleration to get into life to use in practical situations. With these efforts, Moscow is trying to bring better international liquidity for their domestic banks.

On the accelerated CBDCs project, Russian officials released a whitepaper and the prototype will be released by the end of this month. And the trial will start in the first month of 2022. 

And now in this situation, there are huge expectations that Russia may invite non-banking partners like exchanges and credit institutions to the network. 

The Russian Central Bank is also trying to introduce a freedom-based concept in the digital Ruble to make the Russian CBDCs users convert foreign currencies in Russian CBDCs easily, to encourage foreigners to own Russian fiat Ruble in the form of CBDCs.

Read also: Tanzania’s Central Bank says planning to regulate crypto