Will digital ruble defeat dollar?

Aspects of the introduction of the digital ruble were discussed by participants at the conference “Banks, Money and Financial Markets,” which took place today at USUE as part of the V Russian Economic Congress.

Alexey Ponomarenko, a representative of the Research and Forecasting Department of the Bank of Russia, told how the digital ruble could be in demand by Russian households. Examples of the digital rubles use by ordinary citizens have already been recorded in many large cities of the country, including Yekaterinburg, where a man paid for hairdresser services in digital rubles. This confirms that technically using the new currency is no more difficult than using any banking application on a smartphone. Ordinary consumers will not at all feel the difference between non-cash payments and payments in digital rubles. But unlike non-cash payments, you can trace the entire history of the use of the digital ruble, and this is important for the government, for example, when allocating money for specific projects (road repairs, construction of social facilities).  It will no longer be possible to steal the amount or spend it on something not allowed by the government.

Director of the Institute of Economics under the Russian Academy of Sciences, Mikhail Golovnin , noted that from 2024 it is planned to start combining the digital ruble system with the currencies of other countries to freely convert digital rubles into digital yuans or other similar currencies, for example, when making international commercial transactions. In the future, it is even possible to create a multilateral central banks digital currency, multi-CBDC, for example, within the framework of the Eurasian Economic Union. And this, in turn, will contribute to the reformatting of the entire global monetary system.

“The global system is still dominated by US dollar, which has no real alternative. However, now a qualitative technological leap is taking place, and currency competition may intensify,” Mikhail Golovnin thinks. “This is a general trend, and some countries, including the United States and the countries of the euro area, may lose their competitive advantages if they lag behind in the development of these technologies; their currencies as a means of international payments will be replaced by new competitors.”

Currently, 13 banks are participating in the pilot project of the Bank of Russia to introduce the digital ruble: VTB, Alfa Bank, MTS Bank , DOM.R F Bank , Ingosstrakh Bank, Bank GPB, Qiwi Bank, Ak Bars Bank , Promsvyazbank , Sovcombank , Rosbank , TKB Bank and Sinara .

The local and global consequences of the digital ruble introduction were discussed by the participants of the V REC

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