Another world power will start a new era. Russia has fully launched the development of the digital currency

With the great rise of cryptocurrencies in recent years, many world economies have also begun to consider developing their own centralized digital currencies, which could significantly streamline and accelerate the movement of funds.

A clear pioneer in this area is China, which with The development of its digital yuan began in 2014, but the introduction of this currency has also met with a huge amount of criticism, especially due to the powers of government institutions in the areas of its control and supervision of its use.

As he informed CoinTelegraph, progress with the development of its own digital currency was also announced by another world power – Russia. The local central bank (CBR) announcedthat it is setting up a group of banking institutions to test the digital ruble next year.

Russia wants to come up with a prototype of its digital currency this year

So far, 12 Russian banks have joined the project, including state-sponsored giants such as Sberbank and VTB, as well as large private and commercial banks Tinkoff Bank, Alfa Bank, Gazprombank, Promsvyazbank, Rosbank and TKB.

Russia’s central bank also confirmed the country’s plans to complete a prototype of the digital ruble platform by the end of this year, with testing scheduled to begin in January 2022. According to CBR Deputy Governor Olga Skorobogatova .

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The CBR announced initial plans to develop the digital ruble as early as October 2020, when the plans met with strong criticism from several Russian oligarchs, who claimedthat the bank should release a “real financial instrument to ensure independence in foreign trade”, which could be “traditional” cryptocurrencies.

CEO of Tinkoff, which operates Tinkoff Bank, also in early June statedthat CBR policy prevents banks from offering cryptomen-related services.

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It is questionable how fast the development of the digital ruble will develop, but these processes will also most likely speed up the European Union’s right to digital euro, on which big decisions are to be made later this year.

Like the digital yuan, the digital ruble and the euro will no doubt be heavily regulated and will not be “traditional” decentralized digital currencies as we know them.

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The Chinese paradox: The country bans cryptocurrencies, develops the digital yuan and distributes it for free

In China, the digital yuan is already officially legal tender with the same value as other forms of yuan, such as banknotes and coins, while the country still distributes it to citizens free of charge through lotteries, but in 2022 it plans to offer for example, visitors to the Beijing Winter Olympics.