A digital Ruble. A Forbidden fruit growing in the Garden of Eden?
Updated: Jan 2, 2021
In Russia, the use of digital financial technologies is expanding; digital money is increasingly used in everyday transactions. Under current, relentless digitization of money and in business processes, society creates a request for increasing speed, convenience and safety of monetary transactions. Many central banks are actively discussing the introduction of central bank digital currencies (CBDCs). Responding to the changing needs of citizens and businesses, the Bank of Russia is assessing the possibilities and prospects for issuing a digital ruble.
Whether it will use a distributed ledger, a centralized system or a hybrid remains an open question but with CBDC, citizens might give up a little bit of control over their personal wealth. What might become much easier with CBDC:
➫ Manipulate the money supply.
➫ Control who can send money to whom.
➫ Control over foreign currency transactions.
➫ Shut down ATMs to prevent bank runs.
Read full Report in Russian here.
If you live in a democracy with free speech and trust in your leaders, most people can accept that. But if you live in countries with an alternative understanding of democracy, and where inflation may eat you alive, you have nowhere to run. But remember, when you own your Bitcoin's private keys, you have permissionless, immutable and decentralized money that no government can confiscate. Be your own Bank! #bitcoin
This article was first published on Linkedin and also appeared in a modified form on xpertsleague Dubai.