Bank of Russia Adds Digital Assets to Banking Chart of Accounts – Finance Bitcoin News

The Central Bank of Russia added digital assets to its recently published draft of its new banking chart of account. Financial institutions will soon be able provide information about their operations using these assets in the future.

Russian Banks Record Digital Currencies As Assets In Their Accounting Books

CBR has published the draft of the next-year’s updated banking chart of account. Russian lenders will have to account from 2023 for the new type of transactions including those involving digital rubles and those involving digital financial assets (DFAs).

This year, the monetary authority expanded testing of its central bank digital currency (CBDC). It hopes to start piloting real-value settlements by early 2023. Moscow’s authorities also work to regulate digital currencies more fully.

The current DFA law refers mostly to coins and tokens with an issuer but a new bill “On Digital Currency” aims to more fully cover cryptocurrencies like bitcoin. Russia plans to utilize both its digital ruble as well as crypto assets in international settlements amid sanctions that were imposed due to the escalating Ukrainian war.

Only one account has been reserved for the digital ruble while banks will have several accounts to reflect their DFAs in the sections “Acquired Digital Financial Assets” and “Issued Digital Assets,” the crypto page of the Russian business news portal RBC detailed.

Regulators explained the necessity for one digital ruble account, pointing out to commercial banks that they will only process transfers of CBDC money. While the Bank of Russia will issue the digital ruble and keep it in its wallet at the CBR, credit institutions will serve as intermediaries and provide services for individuals and organisations such as execution of transfers.

Russia’s central bank is actively pursuing its digital currency project with over a dozen banks now taking part in the trials of the CBDC platform. It has promoted its use in foreign commerce while the other institutions, including the finance ministry, are keen to allow the usage of cryptocurrency as a way to avoid Western financial restrictions.

What do you think Russia will do to increase its regulation of digital currency payments? Comment below to share your views.

Lubomir Tassav

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.