Olga Skorobogatova, Deputy Governor of the Central Bank of Russia (CBR), has recently stated that digital currencies development is having the potential to challenge the SWIFT international payments system. She believes that due to digital currencies, the traditional payment system will become completely obsolete. CBR Deputy Governor has said that different financial regulators across the world are working continuously to roll out their own digital currency.
In the next few years, several countries will be able to launch their own digital currency. CBR Deputy Governor has stated that if the countries will launch their own crypto, there will not be any need for SWIFT and there might be issues related to direct integration.
CBR Deputy Governor Mentions Security Should be Guaranteed
CBR Deputy Governor has mentioned that in order to get the full integration of digital currencies, there is a need to have a full guarantee of security that is used in the digital currencies. It should be launched only when the security is completely assured.
CBR Deputy Governor has also mentioned that several Western politicians have threatened to disconnect the Russian banks from the SWIFT system. As far as the SWIFT system is considered, it is having several disadvantages as it takes a lot of time to process transactions. Along with this, the cost of processing transactions is too expensive.
Central Bank of Russia Working on Digital Ruble
According to several reports, CBR is also working on launching its own central based digital currency (CBDC) i.e. Digital Ruble. The country will be launching a series of tests, similar to how China has tested the Digital Yuan. The country seems completely enthusiastic about launching its own CBDC which is also evident with the statements given by CBR Deputy Governor. There are claims that its pilot phase might be here in the first half of 2021.