WHAT IS A DIGITAL RUBLE IN SIMPLE WORDS?
The digital ruble is a digital version of the national currency of Russia, which will be issued by the Central Bank of the Russian Federation. It will operate on blockchain technology, which will ensure the safety and reliability of operations. The digital ruble will be fully backed by real rubles held in bank accounts of the Central Bank of the Russian Federation.
It can be used both for settlements between individuals and legal entities, and for making government payments. And since the digital ruble will work on the basis of the blockchain, which guarantees security and protection against fraud. But you still wonder, is it possible to steal a digital ruble?
As with the regular ruble, it is possible to steal the digital ruble. However, thanks to blockchain technology, it is much more difficult to steal a digital ruble than a regular ruble. As we know, a blockchain is a distributed database that contains records of all transactions made with a digital ruble. Each transaction is verified by several network participants, which makes manipulation with the digital ruble extremely difficult.
What functions will the digital ruble have?
The digital ruble will be created by the Central Bank of Russia and will be used alongside the regular ruble. This means that the digital ruble will have the same status and the same exchange rate as the regular ruble. The digital ruble will not replace the regular ruble, but will become its complement.
The digital ruble will have all the functions of a regular national currency, including the ability to use it as a means of payment and savings. However, it will also have some additional features, such as instant transfers and the ability to conduct transactions without the participation of intermediaries. This will make financial transactions more accessible and convenient for citizens and entrepreneurs.
The digital ruble will also allow banks and other financial institutions to reduce the costs of processing payments and transfers, which can lead to lower fees and increase competition in the financial services market. In addition, the digital ruble will allow the state to more effectively control the circulation of funds.
The digital ruble will also have some additional features, such as the ability to be used as a vote in elections and referendums, as well as the ability to use social support and state benefits, such as pensions.
However, the introduction of the digital ruble also raises certain concerns regarding the possibility of fraud and money laundering. The Central Bank of the Russian Federation is actively working on the development of mechanisms for ensuring security and protection against cyber attacks in order to ensure the reliability and security of the digital ruble.
Thus, the digital ruble is a new and innovative means of payment and savings, which offers many benefits for citizens, businesses and financial institutions. We can’t wait to find out how the first tests of the digital ruble will pass. Although this will be tested in large institutions for now, someday this technology will reach the general population!
