Central Bank of the Russian Federation positively evaluated the concept of cryptocurrency from central banks (CBDC)

The Central Bank of Russia examined the potential advantages and disadvantages of digital currencies of the central bank.

Digital currency of the Central Bank is a digital currency issued by the central bank, which has the status of legal tender in the country and other properties of centralized, fiat money.

Cryptocurrencies from central banks (CBDC) can become “the least risky and most liquid asset available to a wide range of people,” the Russian Central Bank believes. The financial regulator presented the report “Does the digital currency of central banks have a future?”

Experts say that a new kind of assets will reduce transaction costs if their technical side surpasses the analogs in terms of ease of payments and savings (such as cash and card accounts).

“If the CBDC turns out to be sufficiently liquid and easy to use, it may well be the full equivalent of cash. Nevertheless, it is worth noting that CBDC de facto will not be able to provide the same level of anonymity that the cash currency provides , ”the experts wrote.

They added that at the moment there is not a single successful, fully functioning and accessible to the general public digital currency. The regulator stressed that many central banks to some extent assess the potential of cryptocurrency, although it is not clear when and how its concept will be implemented.

According to the managing partner of the law firm “EBR” and co-founder of the BCL supplementary education program, Alexander Zhuravlev, the new report of the Central Bank is a “thaw” for cryptocurrencies. Two years ago, the regulator called digital money money surrogate.

“This report can be a good signal, including a talk about a possible thaw and in the legislation: the draft laws on the CFA and crowdfunding. However, of course there are very controversial conclusions related to the assessment of the success of various cryptoactive assets , ”explained Zhuravlev.

In his opinion, the position of the Central Bank that the report contains the argument “the cryptocurrency will exceed its analogues in terms of ease of payments and savings” is a positive sign. Also important is the fact that the report finally concluded that cryptocurrency assets are less anonymous than cash, the specialist concluded.

Previously, the consideration of the bill “On digital financial assets” was postponed to April 2019 . The reasons for the changes are not reported, the document is considered in the State Duma for over a year.

At the end of February 2019, Russian President Vladimir Putin ordered the introduction of regulation of the digital money market before July 1. In January, the Deputy Minister of Finance of the Russian Federation, Alexei Moiseyev, stated that the timing of the adoption of the law cannot be predicted, since the government is trying to “encompass the immense” and introduce “endless changes”.

Publication date 20/04/2019
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