Russia Starts Testing "E-Ruble" End Of 2021

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Vladimir Putin likes to keep control of whatever asset are being traded on his territory. It therefore took a little bit longer for the Kremlin to admit they were planning a Russian central bank digital currency (CBDC), but now that they’ve made their mind up about it, they intend to go fast.

A prototype is announced before the year is over. Expect first tests on Russian soil as from next year.

Anatoly Aksakov, Chairman of the Financial Markets Commission of the Russian State Duma, spoke about the project in an interview with Russia Today earlier this week.

The digital ruble is the highest form of money at this stage. In fact, it is the same ruble, but in the digital form.

Risks are minimal

The politician is full of praise for this project, which would also have the merit of reducing the risk of destabilizing the Russian economy, a risk that Bitcoin does represent. He explained that a prototype of the e-Ruble would be released by the end of 2021.

#CBDC update in Russia: Russian State Duma Financial Market Committee Chairman Anatoly Aksakov has said that testing of the digital ruble may begin in late 2021 or early 2022, and that the active use of the digital currency will occur in two to three years

via @Vedomosti https://t.co/cVE2J6RQJT

— Marina Sinitsyna (@marinasini) March 30, 2021

Aksakov declared that that:

Unlike cryptocurrencies, the risks for holders of digital rubles are minimal, since the issuer of the CBDC is known, and there will be financial support.

This Russian acceleration in the global race for a CBDC is quite impressive, given that only a year and a half ago (in October 2019), the country’s Central Bank said not to be in a hurry. Russian central bankers intend to conduct functional tests of their E-Ruble as soon as possible.

Surely every central banker on the planet thinks their CBDC is the best of all currencies.

However, in the cryptosphere, we know that there are “digital printers” behind these state currencies, that central bankers can thus print limitless amounts and that therefore none of these beats a cap of 21 million units like Bitcoin does.