Digital Ruble, Risks and Benefits

Monitoring of Russia's Economic Outlook. Trends and Challenges of Socio-Economic Development. Moscow. IEP. 2021. No. 8, pp. 12-15

4 Pages Posted: 13 May 2021

Date Written: May 11, 2021

Abstract

The concept of the emission and circulation of the digital ruble published by the Bank of Russia, suggests the active implementation of the intermediary functions between the end users and the digital ruble platform by credit institutions. In this regard, the risks of an outflow of deposits from the banking sector, strengthening of the regulator’s role in the payment and financial sector, as well as a wide range of technological risks due to the need to build a new ramified payment system based on distributed ledger technology remain relevant. The concept of digital ruble consolidates the significant advantages of its circulation: reducing the costs of making payments and increasing the availability of financial services for individuals and businesses through the use of the offline transactions and smart contracts. To assess the balance of risks and benefits from using the digital ruble, the Bank of Russia plans a phased launch of a pilot project for its digital currency.

Keywords: Russian economy, digital currency

JEL Classification: F 30

Suggested Citation

Sinelnikova-Muryleva, Elena, Digital Ruble, Risks and Benefits (May 11, 2021). Monitoring of Russia's Economic Outlook. Trends and Challenges of Socio-Economic Development. Moscow. IEP. 2021. No. 8, pp. 12-15, Available at SSRN: https://ssrn.com/abstract=3843940 or http://dx.doi.org/10.2139/ssrn.3843940

Elena Sinelnikova-Muryleva (Contact Author)

Gaidar Institute for Economic Policy ( email )

Gazetny per 3-5
Moscow, 125993
Russia

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