Russia’s Central Bank Digital Currency Gains Momentum Amid Shifts in Crypto Reserve Plans

Russia’s central bank digital currency (CBDC), the digital ruble, has gained significant momentum in recent months. This new development raises questions about whether the country will abandon its previous goals of using Bitcoin (BTC) as a reserve asset.

The digital ruble bill, introduced by Anatoly Aksakov, Chairman of the Duma Financial Markets Committee, aims to make digital rubles compulsory for banks and merchants. The Central Bank of Russia has collaborated with major financial institutions like Sberbank, Tbank, and Tochka Bank for the digital ruble pilot program, which has expanded from 12 initial participating banks to 15.

The proposal outlines a phased rollout of digital rubles, starting with systemically important banks on July 1, 2025, and gradually expanding to all banks by 2027. Additionally, the bill aims to establish a universal QR code payment system.

Russia’s pivot towards its own CBDC has raised concerns about the country’s potential abandonment of its previous plans to use BTC as a reserve asset. Earlier this year, Russia proposed a Bitcoin reserve program to bolster its economy, with Anton Tkachev submitting a proposal for an experiment on cross-border payments using cryptocurrency. However, Minister Anton Siluanov recently revealed that Russia will not hold BTC as a reserve asset due to the cryptocurrency’s high volatility.

Despite this setback, Russia is still exploring the use of BTC for international transactions and sanctions evasion. The country sees Bitcoin as a potential tool to circumvent US-led economic sanctions, which have significantly impacted its economy.

In conclusion, the growing momentum behind Russia’s digital ruble initiative casts doubt on the country’s long-term commitment to using Bitcoin as a reserve asset. It remains uncertain whether Russia will ultimately abandon its BTC ambitions in light of these developments.

Source: cryptotale.org