The Russian Central Bank Clarifies the Relationship between CBDC and Biometric Data
The Russian Central Bank has emphasized that its Central Bank Digital Currency (CBDC), known as the digital ruble, is not connected to the state’s efforts to collect biometric data. The bank recently initiated a pilot program for the CBDC in 11 cities across the country. In contrast, Russian lawmakers passed a law last year permitting banks and state agencies to gather biometric information from their clients, including facial scans and fingerprints. This legislation led to the development of the Unified Biometric System (UBS), which will serve as a national digital remote identification platform for both the Kremlin and banks.
Unfortunately, many individuals have mistakenly associated the CBDC and biometrics projects, resulting in an increase in fraudsters exploiting this confusion. Reports have emerged of scammers contacting citizens via email and phone calls, requesting biometric data under the guise of converting cash ruble savings into CBDC tokens.
In response to these misconceptions, Elvira Nabiullina, the Governor of the Russian Central Bank, stated that the digital ruble is unrelated to biometrics. Nabiullina clarified that participation in both projects is voluntary, emphasizing that using the digital ruble does not require mandatory biometric data submission. She also revealed that over 50 million people have willingly provided their biometric data so far. Yuri Shabano, Deputy Head of the Russian Ministry of Digital Development’s Digital Identification Technology Department, added that less than 1% of individuals have refused to submit their biometric data.
Hot Take: Clearing Up Misconceptions Surrounding Russia’s CBDC and Biometric Data
The Russian Central Bank has taken a firm stance on clarifying that its digital ruble initiative and the collection of biometric data are separate endeavors. While the bank is actively piloting the CBDC, the biometric data collection project serves as a national remote identification platform. Unfortunately, this distinction has led to an increase in fraudulent activities targeting individuals who believe they need to provide biometric data to access the digital ruble. It is crucial for citizens to understand that participating in either project is voluntary and that the digital ruble does not require biometrics. By raising awareness and dispelling misconceptions, the Russian Central Bank aims to protect its citizens from falling victim to scams.
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