Recent events in the Russian crypto front have led to a well-known critic of Bitcoin, Mr Anatoly Aksakov, chairman of the Russian State Duma Committee on Financial Markets, to endorse the country’s newly digital currency system, as the “highest form of money.”
In 2020, the Bank of Russia, Russia’s national bank, revealed its intent to integrate a national digital currency (CBDC) into the nation’s economy.
The new project, tagged digital ruble, is a uniquely coded unit of offline and online cashless currency, that will be equal in value to the cash based fiat currency.
This development had drawn comments, both in support and against, from several critics, notably Mr Anatoly Aksakov of the Russian State Duma, who asserted that “the digital ruble is the highest form of money at this point,” in an interview with state media RT.
During the interview, Aksakov expressed a firm belief in the success of the digital ruble when it was unveiled, and intimated that in a few years, the integration of the digital currency into the financial system would contribute immensely to national settlements.
Aksakov went on to provide a roadmap of the development of the digital ruble, pointing out that the Bank of Russia should have a prototype of the digital currency ready to go before the end of 2021.
In reply to critics who have voiced their concerns about the security risks and possible fraud inherent to most crypto currencies, Mr Aksakov was quick to reassure them that there would be little risk, since the digital ruble would be issued and controlled by the Bank of Russia, it was still essentially the “same fiat ruble, but in the digital form.”
Aksakov also noted how a digital ruble would remove the need for other currencies, like the Chinese Yuan and US Dollar, in settlements, allowing for Russia to enlarge her presence on the global economical stage.
Despite Mr Aksakov’s reassurances, parties like the Association of Russian Banks are still concerned about the Bank of Russia’s plans for the digital ruble, however, Alexey Zabotkin, deputy governor of the Bank of Russia has maintained that the bank will start piloting the CBDC in early 2022.