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Russian Minister Urges Digital Ruble to be Fast-tracked

As part of efforts to evade UN-imposed financial sanctions, Russian legislator Sergei Mironov has proposed that Russia hasten its introduction of a CBDC.

CBDC to Combat Inflation

Mironov, who also heads the political party, A Just Russia, shared his thoughts with Russia’s central bank. The lawmaker believes that a digital ruble will be a good fit for infrastructural projects.

Additionally, Mironov also pointed out that a CBDC could be instrumental in aiding advancement within the production and transport sector.  Mironov’s proposal comes amidst a growing list of sanctions imposed on Russia by the allied opposition.

In the early stages of the Russia-Ukraine conflict, the instigators were facing economic collapse. Moscow remains cut off from its foreign reserves and the global financial market. In light of this, the value of the ruble has taken a nosedive, initially falling by 10% to its lowest level ever.

According to Mironov, however,  with a CBDC Russia can generate more revenue in addition to subduing rising inflation rates.

The digital ruble should become a full-fledged investment and reserve currency for Russia,” said Mironov.

Russia Evading Sanctions Through Crypto

In recent times, tensions have been high within the crypto industry as Western allies question the potential of crypto assets in Russia’s evasion of sanctions. Mironov is not the only Russian lawmaker to allude to a CBDC. Alexander Yakubovsky expressed sentiments along the same line.

Yakubosky claimed that Russia was keen to delve into cryptocurrencies. The federal government supposedly does see its prospects in restoring economic stability.

The Central Bank of Russia previously occupied a negative standpoint regarding the nation’s adoption of crypto, even endorsing a blanket ban. However, as of 2019, the financial institution began outlining plans for the issuance of a central bank digital currency. The project is well underway at the moment, late last year a model reached completion and a few transactions even occurred in February 2022.

Earlier this week, the Financial Stability Board shared that they had their sights fixed on crypto transactions. Established in 2009, the FSB is a body of regulators with nearly 70 member institutions. The board works to encourage financial stability around the globe.

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The FBS’s current goal is to affirm Russia’s adherence to the prescribed punishment.

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