Bank of Russia Prefers Digital Ruble Over Private Stablecoins

In a fresh episode of the longstanding battle between the Central Bank of Russia (CBR) and the country's Ministry of Finance, representatives of the former have once again voiced their preference: the digital ruble. The Bank of Russia considers digital ruble a preferred alternative to private stablecoins having all advantages of the digital payment means and the reliability of a full.

A representative of Russia’s Central Bank recently denounced private stablecoins in favor of a possible digital ruble. He claimed that the former is unsafe because its “are characterized by higher risks,” as the pool of assets that underly are not held by the owner, nor the price is virtually stable. In the latest dialogue between authorities, the central bank has criticized the Finance Ministry’s idea of supporting private stablecoins, which could be launched by private. The central bank argues the digital ruble offers superior security and stability compared to these privately issued alternatives.

This preference for the digital ruble is shaping the future of digital finance in Russia. The CBR envisions a future where digital ruble transactions are commonplace. By, major banks will have to give their clients an opportunity to conduct transactions with digital rubles, namely to open digital ruble accounts and deposit. This move signals a strong push towards the adoption of the central bank digital currency (CBDC) and a clear dismissal of private stablecoins as a viable solution for digital payments within the Russian economy. The digital ruble, backed by the state, is seen as a safer and more reliable option for Russian citizens and businesses.