Digital currencies are the future for Russia’s financial system, central bank governor says

As the economy moves online, digital currencies will be the future of financial systems, according to Russia’s central bank governor, Elvira Nabiullina. There is a need for fast, cheap payment systems, and central bank digital currencies can fill that gap, she told CNBC’s Hadley Gamble in an exclusive interview.

“I think it’s the future for our financial system because it correlates with this development of digital economy,” she said. Moscow published a consultation paper on a digital rouble in October, and aims to have a prototype ready by the end of 2021. Pilots and trials could start next year, Nabiullina said. “We will go step by step, because it’s [a] very difficult, technological, legal … project,” she said.

Central bank digital currencies are not the same as cryptocurrencies, such as bitcoin. They are issued and controlled by authorities, and the value of one digital rouble will equal one cash rouble, the Bank of Russia said last year. Cryptocurrencies were illegal in Russia until last year, and still cannot be used to make payments.

Digital currencies are the future for Russia’s financial system, central bank governor says, CNBC, Jun 2