Russian journalists reported that the Central Bank of Russia along with participating commercial banks are looking to experiment with different payment methods using the digital ruble. It is planned to test smart contracts and transaction related to real property and crypto asset acquisitions.
Bank of Russia will launch Smart Contracts on the Digital Ruble Platform
Russia’s central bank intends to start implementing smart contracts with the digital ruble next April, the daily Izvestia unveiled this week, quoting the regulator. The new national fiat version will continue to be tested in various situations, such as automated payments between individuals and businesses like the acquisition of real estate.
In December 2021, Bank of Russia completed the design platform for its central bank’s digital currency (CBDC). Twelve Russian banks participated in the pilot program. In the first phase, participating banks are issuing digital rubles. Banks and citizens can set up wallets and make transfer between them. The second stage will feature smart contracts.
Promsvyazbank (PSB), explained that smart contracts enable the execution and monitoring of contractual terms, without any third parties as guarantors. The money is kept in a smart contract wallet on the digital ruble platform and sent to the seller’s wallet as soon as the property rights are transferred. Rosbank said that this technology could be used to target financing for a property purchase by a lender.
Vneshtorgbank, VTB explained how the digital ruble smart contract will be used by large-scale businesses for complex transactions. Izvestia was also informed by the bank that they plan to start testing digital assets with digital rubles.
DFAs, the legal name currently used to describe cryptocurrencies and tokens within Russia, is DFAs. A new bill “On Digital Currency,” designed to expand the regulatory framework for crypto assets, will be reviewed by Russian lawmakers this fall. Experts in Moscow believe that the financial and technological sanctions imposed by Russia for its war in Ukraine could also give rise to the digital ruble.
Are you optimistic that Russia will accelerate its project timeline for digital ruble currencies? Leave a comment below.
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