Many countries are working on Central Bank Digital Currency (CBDC) and some of them have already launched their CBDC pilot program. Russia was talking about CBDC and how it can be used to get the most benefits.
Finally, Russia’s central bank is going to roll out Central Bank Digital Currency (CBDC) pilot program in April 2023. To launch the first pilot program for the digital ruble, they collaborate with 13 local banks. It will not be open for everyone to participate and test the system.
It is stated that general customers will not be able to participate in the first stage of the digital ruble pilot program. But the banks can choose some customers to participate in the initial stage. Along with 13 local banks, several merchants will get involved in it.
They will observe the transactions of individual transfers as well as payment of services and trade. They are working on finding the most efficient way to scale and expand the operation of the digital ruble.
Due to the financial sanctions, Russia has to deal with different issues to do international trade. It is considered a big problem to rely on the SWIFT payments system. They try to find alternatives to the SWIFT payments system in order to make international transactions.
On the other hand, you see the central authority goes hard on stablecoins. US dollar-based stablecoin Binance USD (BUSD) is a security, according to their opinion. As a result, Binance USD (BUSD) issuer Paxos cannot issue the stablecoin BUSD anymore.
People are more of Central Bank Digital Currency (CBDC) and the intention behind launching this digital currency. Do you get a feeling that people feel comfortable when they hear about stablecoins, but when they hear about CBDC, they react in a different way?
I will not be surprised if the central authority starts calling CBDC stablecoin. Whatever they call or put a level, the fundamentals will not change. It will be absolutely controlled by them. They can sell a fake vision of freedom with CBDC. Will people buy into their ideas and embrace CBDC?
It is interesting how they define privacy in CBDC. Privacy means they can get to know everything about what you are doing with the money, just the information will not be available to everyone except them.
Let's see how people respond when the central authority pushes CBDC to its citizens. It may trigger more adoption of cryptocurrency that ensures security, freedom, and control.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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