Elvira Nabiullina sees digital assets as the future of the financial system and payment infrastructure in Russia.
According to Nabiullina, a central bank’s digital currency could help and improve the economy in the country. The implementation of a CBDC is still a challenge for Russia. There are a lot of things that will have to be solved before a blockchain-based digital ruble is launched, but it is not impossible to achieve.
“I think it’s the future for our financial system because it correlates with this development of digital economy.”Elvira Nabiullina
One of the major challenges that the head of the central bank mentioned, is cross-border payments. Many countries are exploring CBDCs at the moment, but the question that remains is how will these virtual assets cooperate?
“If each bank creates [its] own system, technological systems with local standards, it will be very difficult to create some interconnections between these systems to facilitate all cross-border payments.”Elvira Nabiullina
Another issue Russia would encounter if its plan for issuing a digital ruble becomes reality after the trials expected to start next year is countering sanctions from the United States. According to Michael Greenwald, a former US Treasury official, that would be a major concern.
“What alarms me is if Russia, China, and Iran each creates central bank digital currencies to operate outside of the dollar and other countries followed them. That would be alarming.”Michael Greenwald, a former US Treasury official