Digital ruble may go beyond Russia – NES

Digital ruble may go beyond Russia – NES

Digital ruble could be still vulnerable to fraud Russian banks warn


Digital ruble may go beyond Russia – NES

  • If the digital ruble gains popularity, it could break out of the domestic economy.

  • Despite internal problems, Russia still has chances for progress in digitalization, says the professor of the Russian School of Economics

  • The digitization of the economy did not save Venezuela from the exorbitant rise in inflation

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Using the digital version of the ruble can go beyond Russia, says Konstantin Egorov, professor at the Russian School of Economics

The development of the digital ruble may go beyond Russia. At least that’s what Konstantin Egorov, a professor at the Russian School of Economics (NES), thinks in the author’s column for Novaya Gazeta. If the new Russian currency is attractive enough, foreign partners with business representatives may also switch to it, Yegorov said..

“And the more people in the world will use the ruble, the more our country will be able to get the benefits that private companies are so chasing after,” he writes..

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However, the NES professor admits that the scenario of domestic success abroad “can cause fair skepticism”:

“It seems unrealistic to achieve an international advantage in such a technological field, when there are many unresolved problems inside the country.”.

Kenya’s success

At the same time, Yegorov believes that the same thing can happen to Russia as in 2007 to Kenya. A country on the east coast of Africa used little digital banking, but many still owned mobile phones.

Digital ruble may go beyond Russia - NES

“Despite all the Russian problems today, it seems that there were still more of them in Kenya,” notes Egorov.

At the same time, the local operator Safaricom solved the problem by integrating banking services into customers’ mobile accounts. The success was so obvious that in 2019, Kenyan mobile banking was used in seven countries.

Digital ruble may go beyond Russia - NES

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Egorov is confident that the digital ruble will have a better chance of surviving if it appears as soon as possible. However, according to Dmitry Peskov, Special Representative of the President of the Russian Federation for Digital Development, Russia will no longer be able to become a leader in digitalization, since the country was several years late in the race to digitize the economy..

Venezuelan scenario

According to Anatoly Aksakov, Chairman of the RF State Duma Committee on the Financial Market, Russian banks will be able to avoid isolation in the international arena with proper regulation of the digital asset market. The digital ruble is expected to help Russia avoid both pressure from the US dollar and the sanctions themselves.

Digital ruble may go beyond Russia - NES

In a similar way, at one time, Venezuela tried to avoid sanctions pressure from the United States. However, despite attempts to transfer the population by voluntary-compulsory methods, the price increase in Venezuela in the nine months of 2020 still exceeded the 1,400% mark..

Nevertheless, digital assets in Venezuela were still able to play their role, albeit for a certain circle of people. BeInCrypto’s editors reported that the high activity of cryptocurrencies in Venezuela could mean the laundering of large funds by persons close to President Maduro.

The ruble itself, meanwhile, continues to fall in price rapidly. At the time of this writing, the euro rate reached 94 rubles (for the first time since 2014), and the dollar jumped to 80.8 rubles. How the digital ruble can affect the domestic economy – read in a special material from BeInCrypto.

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