BRICS member Russia is discussing implementing ideas of a Central Bank Digital Currency (CBDC) for the ruble to be used as budget payments for its citizens and businesses. The move will help localize the digital ruble making citizens and businesses use the currency widely.
Russia aims to reduce dependency on the US dollar and popularize the ruble in both the local and global markets. The country is leading the de-dollarization agenda with BRICS and now wants to make the CBDC ruble gain popularity. If the plan goes through, Russia will initiate pilot runs and test the methods of budget payments in the country.
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The Central Bank of Russia Governor Elvira Nabiullina confirmed that the country is discussing testing digital ruble payments for citizens and businesses. If this becomes a success, BRICS could follow suit and kick-start CBDC campaigns to end reliance on the US dollar.
“We are conducting an analysis with them of the possibility of both payments to the budget from citizens and businesses. And budget payments to citizens and businesses. Because we consider this a possible promising direction for using the digital ruble,” she said.
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BRICS: CBDC Ruble For Businesses & Citizens in Russia
BRICS country Russia is planning to push the nation to usher into a new financial era through digital ruble CBDC currencies. Around 90% of all Central Banks across the world are also testing CBDC currencies in pilot batches. Only the US is staying away from CBDC citing it has no use in the financial ecosystem.
Also Read: BRICS ‘Ready To Work’ With All Countries To Ditch US Dollar
If BRICS and other developing countries find success in CBDC currencies, the US will arrive late to the party. The move will put CBDCs in the driver’s seat while the US dollar takes the backseat in the global economy. Therefore, the Federal Reserve needs to act quickly and consider CBDCs for the US dollar to stay ahead of the changing global financial dynamics.