Russian central bank explores the idea of digital money
- Private money poses a threat to the financial system, according to the head of the Russian central bank.
- The Regulator is looking into the idea of digital money.
The head of the central bank of Russia Elvira Nabiullina reiterated the negative attitude towards privately issued money - either paper-based or cryptographic. However, she confirmed that the regulator is looking into the conception of digital money to start tuned with the latest global trends.
Speaking in Duma, Nabiulina emphasized that the central bank would oppose the issuance and circulation of money substitutes in any form.
"We are all for the development of financial technologies; however, we do not support private money in any form, whether they are digital or not. If they replace sovereign money, they will damage monetary policy and threaten financial stability", - she explained (the quote is translated from Russian).
Meanwhile, the central bank is ready to consider the digital assets that do not replace sovereign money. Though, what kind of assets were meant remains unknown.
Nabiullina confirmed that the Bank of Russia considers the issuance of its own digital currency (CBDC - central bank's digital currency). She said the the government is studying the idea of digital money just as many other central banks all over the world. At thee same time she emphasized that no decisions had been made as the advantages over the existing electronic payment systems remained unclear.
Author
Tanya Abrosimova
Independent Analyst
