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Russia doesn’t have to be the first country to have a CBDC, says a state official

October 23, 2020

A Russian official argued that The country should have launched an investigation into the CBDCs four years ago to claim leadership in this area.

However after Dmitry Peskov, Special Envoy of the President of the Russian Federation for Digital and Technological Development, The benefit of acting first also carries a number of risks to financial stability.

According to RBC News Service on Oct. 23, Peskov said a “fast second” strategy in developing a CBDC could be more efficient than becoming the world’s first issuer, stating:

“The financial risk is so great that a” fast second “strategy seems to me much more effective than trying to be first. Let’s see what the leader can do and what obstacles he will encounter. “

Russia doesn’t have to be the first country to have a CBDC, says a state official
Russia doesn’t have to be the first country to have a CBDC, says a state official

Peskov stated that Russia’s CBDC, a digital ruble, It could become a reality in three to seven years if development starts now.

The Russian central bank officially published a consultation paper on CBDCs on October 13th. Later, Anatoly Aksakov, a member of the Russian State Duma and a key advocate of Russia’s legislative efforts regarding cryptocurrencies, stated that the digital currency will enter a pilot phase in the first half of 2021. Aksakov is confident that the next digital ruble is “the future”, while decentralized cryptocurrency tokens like Bitcoin (BTC) have no future.

Financial experts in other countries are also adopting a wait-and-see approach with CBDCs. On the 19th of October Jerome Powell, the United States Federal Reserve, stated that Better to get it right than be the first. The New Zealand central bank made a similar statement “There is a lot to do” in the CBDC space before a national digital currency is issued.