Digital ruble – money in the form of program code.
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Let’s make a reservation right now: there are no digital rubles in circulation yet, and it is not known when they will be. But the legislative basis for its appearance has appeared. On August 1, the law on the digital ruble came into force. Defines the basic terms and basic principles of the new system (details will be finalized for a long time).
We answer the main questions related to innovation.
What is a digital ruble?
In fact, this is the third aggregate status of the ruble. Just as water has vapor, liquid and ice. So our currency will have three types:
– cash (coins and bills)
– not in cash (in bank accounts)
– digital (in the form of program code)
Where will it be stored?
In a special digital wallet. It will be created in the Central Bank. Each person will have their own account. He will be able to transfer the money from him to you. It will be possible to enter the digital wallet through the mobile application of any bank.
What is your course?
The same as that of a ruble in cash or not in cash. They will be identical to each other.
At the same time, it will be possible to transfer money from one form to another for free. Just like now, you can go to an ATM and deposit or withdraw cash. The same goes for the digital ruble. You can always top up or empty your digital wallet. And put money into a bank account and then withdraw money if you want.
Will it be a link?
No, as the Central Bank assures, it will be possible to keep money in digital rubles at will. Dear – use. If you don’t want it, don’t use it. Exactly the same as now. Each of us can, at will, pay with a card and make transfers to each other by phone number, or use cash for these purposes. There will always be a choice.
Is it something like a cryptocurrency?
No, these are fundamentally different things. Any crypto is an anonymous currency. It is created by programmers. There is no regulatory body and laws that everyone must comply with without question.
The digital ruble is the official means of payment issued by the Central Bank. Your users will be identified. Therefore, there will be no anonymous payments, as in the case of cryptocurrencies.
That is, our spending will be total control?
The state already knows enough about how money moves between citizens and businesses. We no longer use cash. Instead, the volume of transfers through the fast payment system is growing. The appearance of digital rubles is unlikely to radically change the situation.
And the state has no plans to give up cash yet. If someone feels comfortable using them, this form of currency will remain. In addition, the banknotes become more durable. And you don’t need to write them.
How to use them?
About the same as non-cash money.
Log in to your bank’s mobile app. Sign in to your digital wallet. And you can deposit money from your bank account there or withdraw it. If you want, you can even make a transfer by phone number. Directly from the digital wallet. The money will be instantly in the recipient’s digital wallet.
As for payment, everything is simple here too. You must go to the digital wallet, read the QR code that will appear in the merchant’s bank terminal and confirm the payment. The money will be canceled instantly.
In the future, as explained in the Central Bank, it will be possible to pay with digital rubles using NFC contactless technology. That is, simply by bringing the phone closer to the cash register.
Will interest or cashback be charged?
Neither one nor the other will be credited in digital rubles. In this case, digital rubles have the same properties as cash. While they are in the wallet, they are not charged interest. In addition to cashback, if you pay for purchases with them. At the same time, digital ruble loans will not be issued either. All this will continue to be the domain of the banks.
Will the money in the digital wallet be secured?
There’s no need. Money in a digital wallet will not disappear anywhere. Because they are not in the bank, but in a personal account on the platform of the Central Bank. Even if the bank through whose mobile application you use digital rubles goes bankrupt, you can use this money through the mobile application of another bank.
That is, you can safely store in a digital wallet much more than 1.4 million rubles, which are protected by the deposit insurance system.
What other advantages does the digital ruble have?
To be fair, they’re still not that obvious. But there is something.
1. You will have to pay fewer commissions to banks. Now free transfers through the fast payment system are limited to 100,000 rubles per month. And through the digital wallet it will be possible to transfer unlimited amounts without any commission. There is only one limit for depositing money there – 300 thousand rubles per month. There are no other limits.
2. It will be possible to pay with digital rubles even where there is no stable Internet. However, this technology is still under development.
Why all this to the state?
This is a new technology that is being developed all over the world. We try to be at the forefront. In fact, a new architecture of future monetary relations is now being designed. Partially digital rubles should become an alternative to cryptocurrencies, which in recent years have taken the bread from central banks.
Also, digital rubles are an electronic replacement for cash. Sooner or later, banknotes and coins will become obsolete. Just like stocks and bonds are no longer issued on paper. Now they only exist as entries in electronic records. But this does not bother investors in these securities.
Will all state employee salaries and pensions be transferred to digital rubles?
There are no such plans. Even if you take the Mir card, only those who received payments from the budget in a non-monetary way were transferred to it. Exclusively to save your money from possible western sanctions. At the same time, any person can choose how to receive a pension or salary: on a card, in cash at the checkout or by mail (for pensioners).
If the power or the Internet goes out, will digital rubles disappear?
No. Electricity and internet can be turned off for as long as you want, hackers can attack bank websites, but non-cash money in our accounts isn’t going anywhere. With the digital ruble, everything will be the same. All information about the money that belongs to us will be stored on the platform of the Central Bank. Data backup is provided.
What if scammers gain access to digital wallets?
The Central Bank assures: the information will be protected with the greatest possible care and unauthorized access to the data will be impossible.
True, not a single “digital lock” can protect you from phone scammers. Only common sense will help here.
When will all this appear in mass circulation?
The first stage of testing the new system will begin in August. 15 large banks and their clients who agreed to participate in the experiment will test the use of the digital ruble.
There will be several stages of testing. In each case, the Central Bank and the banks will check how all the mechanisms work, how safe and fast everything is. No hurry. Digital rubles will be released into mass circulation when everything is ready. But this is unlikely to happen this year, and next year too.
