Pakistan Government Plans to Introduce Digital Currency for Rupee StabilitySeptember 21, 2023
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MOSCOW – Russia is set to initiate consumer trials of its digital ruble on August 15 following an extensive testing phase with financial institutions, as announced by the central bank on Wednesday. This move reflects Moscow’s commitment to expanding the reach of its cross-border payment capabilities.
In line with the efforts of numerous other countries, Russia ruble has been actively developing a Central Bank Digital Currency (CBDC) – digital tokens issued by the central bank – over the past couple of years.
This initiative aims to modernize the nation’s financial infrastructure and address challenges posed by cryptocurrencies like Bitcoin. “We are anticipating the testing of operations involving real customers,” stated Olga Skorobogatova, the central bank’s First Deputy Governor.
The pilot program will encompass activities such as setting up digital wallets, conducting transactions with digital roubles, and facilitating transfers among approximately 600 customers and 30 companies across 11 cities.
- At present, CBDCs have been officially introduced in Nigeria, Jamaica, and the Bahamas, while China, India, Saudi Arabia, France, and Ghana are in the process of conducting pilot programs.
According to cybersecurity experts, the implementation of a sandbox environment for testing and standardizing digital currency would represent a significant milestone for Pakistan’s central bank, marking a notable step forward.
The program is poised to pave the way for Russia to establish cross-border payment systems with other nations that also issue digital currencies, according to Skorobogatova.
Moscow has been compelled to accelerate the development of its payment infrastructure, primarily due to extensive Western sanctions imposed in response to its actions in Ukraine, which led to Russia being cut off from significant portions of the global financial network.
The widespread rollout of the digital rouble is slated for 2025. In the coming year, the central bank intends to broaden participation by welcoming an additional 19 banks eager to join the pilot program, as noted by Skorobogatova.
Comparing Safety: CBDCs Outshine Cryptocurrencies in Security
Central bank digital currencies (CBDCs) offer enhanced security when contrasted with cryptocurrencies and are strategically crafted to work in harmony with conventional physical cash and traditional electronic payment methods.
These currencies are rooted in blockchain technology (DLT) and are specifically engineered to deliver a secure and streamlined platform for executing digital transactions.