Russia will test out digital ruble payments for real estate transactions.
The Russian press claimed that the Central Bank of Russia and partner commercial banks intend to test alternative payment methods using the digital ruble. The idea is to test out smart contracts and real estate and cryptocurrency asset acquisition deals. According to the regulator, which was cited this week by the daily Izvestia, Russia’s central bank plans to start integrating smart contracts with the digital ruble in April. Until then, a number of situations, such as automated payments and other transactions between customers and businesses, such real estate purchases, will be used to test the latest iteration of the national fiat.
In December 2021, the Bank of Russia completed the prototype platform for the central bank digital currency (CBDC). Twelve Russian banks joined the test programme in January of this year. Participants are currently creating wallets for banks and citizens, issuing digital rubles, and conducting transfers between them. During the second phase of the pilot, smart contracts will be introduced. Promsvyazbank (PSB) noted that smart contracts make it easier to carry out the terms of a contract without requiring a third party to act as a surety. As soon as the ownership rights are transferred, the funds are transferred from a smart contract wallet on the digital ruble platform to the seller’s wallet. Rosbank stated that the technology can be used to finance real estate specifically.
The digital currency smart contracts, according to Vneshtorgbank (VTB) for the article, will enable big businesses to carry out complicated transactions. The bank, which is also a participant in the pilot, notified Izvestia that it plans to begin testing the purchase of digital financial assets (DFAs) with virtual rubles in September. Currently, cryptocurrencies and tokens are referred to as DFAs in Russia. A new “On Digital Currency” bill that aims to expand the legal framework for crypto assets will be considered by Russian MPs this fall. According to commentators in Moscow, the financial and technological sanctions imposed on Russia as a result of its conflict in Ukraine could potentially help the digital ruble plan.