A Russian Analyst’s Critique of the Digital Ruble
Anastasia Tselykh, a special correspondent at RTVI, has expressed skepticism about the benefits of the digital ruble, Russia’s proposed central bank digital currency (CBDC). In her column, she argues that the digital ruble primarily benefits the Central Bank by allowing them to track citizens’ money without needing separate requests to financial organizations. Tselykh acknowledges that there may be some advantages for ordinary citizens, such as the possibility of using the token to make offline payments. However, she highlights that the technical capabilities for this do not yet exist. Furthermore, she questions the Central Bank’s claims about cross-border payments and the ability to evade sanctions using CBDCs.
Key Points:
- The digital ruble is seen as a step towards a digital gulag, with Tselykh suggesting that it gives the Central Bank excessive control over citizens’ finances.
- Tselykh is skeptical about the potential benefits for ordinary citizens, arguing that there are currently limited use cases for the digital ruble.
- She raises concerns about the Central Bank’s claims regarding cross-border payments and the ability to evade sanctions, suggesting that international regulators would still be able to trace transactions.
- The analyst acknowledges the potential for offline payments using prepaid hard wallet-type cards, but notes that the necessary technical capabilities are not yet available.
- She concludes that the rush to adopt CBDCs may be driven more by a trend than a true understanding of their implications.
Hot Take:
While the digital ruble may offer some benefits, such as offline payments, there are concerns about its potential for excessive surveillance and limited use cases. The skepticism expressed by Tselykh raises important questions about the motivations behind CBDC adoption and the true impact it will have on citizens.
By
By
By
By
By