Russian Central Bank on Thursday made a statement about its inclination towards a two-tier system for a digital rouble. The idea of digital rouble floated to facilitate payments. With banks opening digital wallets with the regulator and serving as intermediaries for customers and companies. Large central banks across the world are stepping up efforts to evolve digital currencies. This will modernize the financial systems by speeding up payments and counter a possible threat from cryptocurrencies.
The Two-Tier System Give Additional Advantage to Citizens
It was in October 2020, Russia’s central bank first floated the idea of the digital rouble. The main motive behind introducing the same is that it could be issued on top of existing cash and non-cash roubles to facilitate payments.
Ivan Zimin, Head of the Central Bank’s Financial Technology Department said, “We are leaning towards model D, which will allow us to keep the two-tier system we have and give an additional advantage to citizens, companies, and the state in terms of speeding up settlements, heightening their security, reducing costs and increasing financial accessibility.”
Russian Central Bank Financial Technology Deptt Take on The Wallet
The advantages this two-tier system gives will enable the central banks to create a digital currency platform and give individuals and companies access through banks and other financial institutions.
According to Zimin, “The wallet will not be tied only to the credit institution which first opened it.” “accessing one’s wallet through another organization would be possible after certain financial control checks.” “In our view, this really increases accessibility and lowers ‘payment slavery’,” he added.
The Russian bank has not yet come up with clarity on the technology it plans to use for its digital platform. But according to Zimin, the distributed ledger technology, best known for powering Bitcoin and other cryptocurrencies, was one of the elements that are being used.