Russian Central Bank Announces First Successful Digital Ruble Transfers Between Users: Crypto Moves
RIYADH: The Central Bank of the Russian Federation and participating financial institutions have started testing a national digital currency.
The trials were launched after the completion of a prototype of the digital ruble platform in December 2021.
Twelve banks applied to join the pilot group of the project, and three of them have already connected their systems to the central bank’s digital currency platform.
Two of the banks have successfully completed a full cycle of digital ruble transfers between customers using mobile banking apps, the regulator explained.
Users were able to open digital ruble wallets through the apps and exchange regular e-money from their bank accounts for digital rubles, then transfer the coins between themselves, according to CBR’s announcement.
“The digital ruble platform is a new opportunity for citizens, businesses and the state,” said Olga Skorobogatova, Vice President of the CBR.
She explained that transfers in the sovereign digital currency will be free for residents of Russia and available anywhere in the country.
The system will also reduce transaction costs for businesses and enable them to introduce new products and services.
Future plans include introducing offline transactions and allowing non-residents to use the digital ruble.
Based on the results of the pilot phases, a roadmap for the full implementation of the new form of fiat money will be formulated.
Bitcoin, the leading international cryptocurrency, traded lower on Thursday, falling 1.66% to $43,329 at 1:21 p.m. Riyadh time.
Ether, the second most traded cryptocurrency, was priced at $3,073, down 1.83%, according to data from Coindesk.
Mastercard, an American multinational financial services company, is expanding its payments-focused advisory service to include cryptocurrency.
“Mastercard’s advisory efforts with banks and merchants span a range of digital currency capabilities, from early education, risk assessments and bank-wide crypto and NFT strategy development to crypto cards. and the design of crypto loyalty programs,” the company said.
The company added: “Mastercard has arranged partnerships with digital native companies that offer the best cryptocurrency solutions,”
“It has helped fintechs expand into new markets, through go-to-market planning and marketing strategies.”