On May 5, 2018, Russian President Vladimir Putin signed a decree on digital ruble settlements, which among other things, will give legal status to cryptocurrencies. The Russian central bank is also expected to launch a digital ruble in the nearest future.
Kalashnikov, the Russian weapons manufacturer, has launched a digital currency unit to settle interbank transactions in rubles. The technology will provide a settlement system for the Russian banking system, the company told Reuters. The technology, which is built on the Blockchain distributed ledger, allows financial institutions to settle transactions at a fraction of the cost of traditional, centralised settlement systems.
The Russian Defense Ministry has announced that it is looking at the possibility of establishing a cryptocurrency, known as the “cryptoruble,” as an alternative to the traditional government-issued ruble. The ministry’s announcement comes as Russia prepares to host the 2018 World Cup in June, a month when the government has traditionally earmarked a portion of its budget for the World Cup preparations. If the cryptoruble becomes a reality, it would allow the Russian government to make more than $1.5 billion in revenue during the tournament, according to a report in Russian publication Vedomosti.. Read more about ethereum problem and let us know what you think.Kalashnikov Group, a Russian firearms manufacturer, is ready to move to payments in digital currency. The statement was made at the St. Petersburg International Economic Forum, where the Russian Central Bank confirmed its intention to replace the dirty and infectious paper currency with the digital ruble, which is under development.
Russian company Kalashnikov wants to switch to digital rouble
Russia’s largest arms company Kalashnikov wants to switch to digital currency, owner Alan Pushnikov said at the International Economic Forum in St Petersburg. The event, held annually in Russia’s second-largest city, brings together government officials and business leaders from more than 100 countries to discuss ways to remove economic barriers between their countries and the Russian Federation. Quoted by TASS, Lushnikov said: We expect the banking system to switch to a non-banking settlement system. Everyone is talking about digital currency. That’s what we really need. The digital currency system will not be linked to SWIFT, the international network for bank messages, and will not be controlled by bankers, said Alan Lushnikov, former deputy transport minister. Russia, which is under Western sanctions for its annexation of Crimea and Moscow’s involvement in the conflict in Ukraine, has been threatened by the EU and US with exclusion from the interbank payments system. Dozens of central banks around the world are working on plans to issue national digital currencies, including banks in China, the United States and the eurozone. The Bank of Russia is preparing to unveil a prototype digital ruble by the end of 2021. Deputy Governor Olga Skorobogatova said in December that the development of digital central bank currencies (CBDCs) could make traditional banking systems such as SWIFT obsolete.
Digital currency will replace dirty paper money, says central bank official
Cash as we know it today is a dying technology, said Skorobogatova’s colleague, First Deputy Chairman of the Bank of Russia Sergei Shvetsov. In a few decades, paper money will be considered marginal and eventually replaced by digital currency, a senior official said at a forum in St Petersburg. He was quoted by the agency TASS as saying that cash is not only dirty but can also spread infections, given the current crisis among bovine animals: It’s called dirty money, but now it’s also an infection. Of course, it’s just an outdated technology. Shvetsov noted that the coronavirus pandemic has contributed to the rejection of cash. According to him, banknotes are still mainly used for day-to-day operations or in the absence of alternatives to cash payments. I think one day, in 20-30 years, cash will be marginal. The digital ruble will replace it, the vice president said, stressing that the Bank of Russia has not yet made a final decision on the future of the project. And the speed of development will depend on technological readiness, Shvetsov noted. How about digital currencies from central banks? Share your thoughts on this topic in the comments section below.
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Bank of Russia, cash, CBDC, CBDCs, central bank, corporation, digital currency, digital currency, weapons, Kalashnikov, Kalashnikov corporation, manufacturer, official, owner, paper money, payments, project, Russia, Russian, offset, weapons Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.The Russian ruble has lost much of its value against world currencies in recent years – and the same goes for the national currency in neighboring countries like Ukraine. However, some experts are saying that Russia could have the answer to solve this, since the central authorities are planning to introduce their own digital currency.. Read more about wirex news and let us know what you think.
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