The Russian press reported that the Central Bank of Russia and participating commercial banks are looking to test different types of payments with the digital ruble. The plan is to experiment with smart contracts and transactions related to real estate and crypto asset purchases.
Bank of Russia will launch smart contract on 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, citing the regulator. Until then, the new incarnation of national fiat will be put to the test in a variety of scenarios, including automated payments and other transactions between individual users and businesses, such as real estate acquisitions.
The Bank of Russia finalized the prototype platform for its central bank digital currency (CBDC) in December 2021. In January of this year, a dozen Russian banks joined the pilot project. In its first phase, participants are issuing digital rubles, setting up wallets for banks and citizens, and making transfers between them. Smart contracts will be introduced during the second phase of the pilot.
Promsvyazbank (PSB) explained that smart contracts facilitate the execution of contract terms without involving a third party as a guarantor. 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 the technology could be employed for targeted financing of the purchase of real estate by a lender.
The digital ruble smart contract will allow large businesses to conduct complex transactions, detailed for the article Vneshtorgbank (VTB). The bank, which is also participating in the pilot, told Izvestia that it plans to begin testing digital financial assets (DFA) purchases with the digital ruble in September.
DFA is the current legal term describing cryptocurrencies and tokens in Russia. A new bill “On Digital Currency”, designed to expand the regulatory framework for crypto assets, will be reviewed this fall by Russian lawmakers. Moscow experts say the financial and technical sanctions imposed on Russia over the war in Ukraine could also accelerate the digital ruble project.
Do you expect Russia to accelerate the project program for the digital ruble currency? Tell us in the comments section below.
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