The Digital Ruble of Russia Empowers Smart Spending
Russia has introduced its digital ruble, a new form of fiat currency that promises to revolutionize spending for both the government and families. Anatoly Aksakov, a high-ranking lawmaker involved in the legislation's adoption, shares some remarkable advantages of this programmable central bank currency.
Lawmaker Explains the Advantages of Programmable CBDC
The Central Bank of Russia will take a proactive approach to ensure the responsible use of its digital ruble. Anatoly Aksakov, the head of the parliamentary Financial Market Committee, explains that certain restrictions will be put in place by the monetary authority during the introductory stage of the digital ruble.
The recently passed legislation in the State Duma, the lower house of the Russian parliament, was approved by the Federation Council, the upper house of the Federal Assembly of Russia, on Wednesday and is now awaiting the signature of the Russian President Vladimir Putin to take effect.
Aksakov, in an interview with Parlamentskaya Gazeta, highlights the potential of the digital ruble in enabling better control of money by utilizing smart contracts. This means that funds given to children, for instance, can be allocated specifically for designated purposes like breakfast, books, or textbooks, ensuring they are spent responsibly.
“For example, you give money to a child who goes to school, stipulating that the money can only be spent on breakfast, books or textbooks, and nothing else. Accordingly, no matter how much they desire to use it for other purposes, it will be impossible to do so,” Aksakov explained.
"The intended use of the money allocated by the parents to their child will be prescribed," Aksakov explains, preventing any unauthorized spending of parents' digital rubles on harmful sweets for young pupils.
Smart Contracts to Control Spending with Digital Rubles
This same principle extends to state funds, which will be efficiently allocated for specific programs, enhancing the overall use of budgetary resources. Additionally, businesses can also benefit from this programmable CBDC in their transactions, leading to increased financial flexibility. Russia's digital ruble brings a new era of responsible spending and opens doors to exciting possibilities for the future.
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