The Central Bank of Russia and participating commercial banks want to test different payment methods with the digital ruble, the Russian press reported. It plans to experiment with smart contracts and transactions related to the purchase of real estate and crypto assets.
Bank of Russia launches smart contracts on the Digital Ruble platform
The Central Bank of Russia intends to start implementing smart contracts using the digital ruble next April, daily Izvestia revealed this week, citing the regulator. Until then, the new incarnation of the national fiat will be put to the test in various scenarios, including automated payments and other transactions between individual users and companies, such as: B. the acquisition of real estate.
The Bank of Russia has completed the prototype platform of its central bank digital currency (CBDC) in December 2021. In January this year, a dozen Russian banks joined the pilot project. At the first stage, participants issue digital rubles, set up wallets for banks and citizens, and make transfers between them. Smart contracts will be presented in the second phase of the pilot project.
Smart contracts make it easier to execute contract terms without involving a third party as a guarantor, Promsvyazbank (PSB) explained. Funds are kept in a smart contract wallet on the digital ruble platform and sent to the seller’s wallet once ownership is transferred. Rosbank added that the technology could be used to target a lender’s financing of a property purchase.
Digital ruble smart contracts will allow large companies to conduct complex transactions, Vneshtorgbank (VTB) explained for the article. The bank, which is also participating in the pilot, told Izvestia that it plans to start testing the purchase of digital financial assets (DFAs) with digital rubles in September.
DFAs is the current legal term describing cryptocurrencies and tokens in Russia. A new bill “On Digital Currency”, which aims to expand the regulatory framework for crypto assets, will be considered by Russian lawmakers this fall. Financial and technological restrictions imposed on Russia because of its war in Ukraine could also give a boost to the digital ruble project, experts in Moscow say.
Do you expect Russia to accelerate the ruble digital currency project plan? Tell us in the comment section below.
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