Bank of Russia Looking at Creating a Digital Russian Ruble

Bank of Russia Looking at Creating a Digital Russian Ruble
October 15, 2020

 

Bitcoin (BTC) continues to trade above the $11,000 level, but the range has become too narrow, and a breakout is expected soon. At the time of writing this article, Bitcoin was trading at $11,382.48, down 0.5% in the past 24 hours.  Ethereum (ETH) has lost 1.5% to trade at $377.26. XRP has lost 3.3% to trade at $0.2481.

The only major altcoin which has rallied in the past 24 hours is Bitcoin Cash (BCH-$258.67, 1%).

Major altcoins which have lost value in the past 24 hours are Monero (XMR-$127.87, -1.1%), OKB (OKB-$5.97, -1.9%), Litecoin (LTC-$49.61, -0.7%), Cardano (ADA-$0.1059 -3.7%), ChainLink (LINK-$10.71, -3.7%), Tron (TRX-$0.0266, -1%), Huobi (HT-$4.65, -0.6%), Tezos (XTZ-$2.25, -6.5%), Binance Coin (BNB-$30.79, -0.2%), Cosmos (ATOM, $5.59, -7.6%), Dash (DASH-$69.59, -2.7%), Polkadot (DOT-$4.15, -2.6%), IOTA (IOTA-$0.2736, -4.3%), Bitcoin SV (BSV-$168.19, -1.8%), Tether (USDT-$0.9978, -0.2%), EOS (EOS-$2.60, -1.4%), and Stellar (XLM-$0.0735, -3.8%).

 

Government level initiatives

Bank of Russia looking at creating a digital Russian ruble

The government of Russia intends to issue central bank digital currency (CBDC).  In this regard, the Bank of Russia has published a white paper on the creation of the digital Russian ruble.

The central bank stated that the digital ruble could transform into an “additional form of money alongside cash and non-cash.” The bank pointed out that additional payment infrastructure is necessary to begin Russia’s CBDC project.

The bank also stated that the digital ruble would carry “all the necessary properties to perform the functions of money.”

As per the document released by the Russian authorities, the digital ruble has been structured to facilitate payments “faster, more simple, and secure.” The bank also pointed out that a CBDC – digital ruble for example – will minimize the risk of capital outflow. The bank said, “The national digital currency will also limit the risk of reallocation of funds into foreign digital currencies, contributing to macroeconomic and financial stability.”

As per the bank, users will be able to gain hold of the digital ruble on their e-wallets and mobile phones. Both online and offline access will be facilitated. The bank said, “Thus, the digital ruble will supplement the monetary circulation and will be used simultaneously with cash rubles and funds of the population and enterprises in accounts with commercial banks.”

The digital ruble will be made available for all players in the economy, including residents, businesses, financial market participants, and government companies. The bank stated that the digital ruble would serve three functions, namely “store of value, a medium of exchange and a unit of account.“

 

Private sector initiatives

Flare Finance to build Flare Networks DeFi product

Flare Networks, funded by Ripple, will have its foremost DeFi product, built by Flare Finance. In this regard, the Flare Finance development team disclosed that they have rolled out a trial network for their platform, named Coston. The application launched by Flare Finance comprises of a platform named FlareX that will function as a decentralized exchange with a multi-token environment. Specifically, it supports YFLR, YFIN, YMIN tokens in concurrence with SPK and the FXRP token. Furthermore, the platform has stated that it will offer “6 revolutionary products” to facilitate users to carry out yield farming and take part in the decentralized governance model.

The platform also facilitates margin and spot P2P trading, insurance cover on a decentralized basis and non-custodial liquidity pool, to name a few, as per the official website, which claims as follows: “Soon, decentralized finance will make it’s way to the XRP Ledger through the use of the Flare Network, a revolutionary approach to enabling smart contracts for the 3rd largest cryptocurrency in the world. Through the use of smart contracts on the Flare Network; Flare Finance opens the door for many new financial products.”

 

Gemini crypto exchange joins forces with BCB Group

The Winklevoss twins owned Gemini cryptocurrency exchange has entered into a partnership with BCB Group, a crypto centered payment processor headquartered in Europe. Notably, BCB already offers its services to Bitstamp, Coinbase, and Galaxy Digital.

BCB Group offers payment services to institutions, in addition to business accounts and crypto market liquidity for institutions focused on cryptocurrencies. Earlier this year, the Group’s major subsidiary was endorsed as an authorized payment institution (API) by the FCA (Financial Conduct Authority).

Under the partnership, BCB aims to offer Gemini’s customers in the UK with quicker ways of remitting and receiving British pounds. The exchange will be linked to BCB’s API, easing Gemini’s connectivity with several banks and fiat currencies and minimizing the necessity for physical intervention in executing transactions.

As per Gemini’s chief compliance officer for Europe, Blair Halliday, the partnership will assist Gemini in securing “access to real-time settlement infrastructure, enabling us to integrate with our banking partners.”

Following the partnership, Gemini’s UK clients will be able to deposit and withdraw pounds through the Faster Payments scheme, SWIFT, and CHAPS. Furthermore, clients will be able to link their debit cards with their Gemini trading accounts.

 

Miscellaneous

An electoral win by Joe Biden could see better mainstream adoption of Bitcoin

A crypto-focused newsletter published by Bloomberg argues that the victory of Joe Biden in the US Presidential election would result in better majority adoption of Bitcoin (BTC), in addition to likely approval for Bitcoin focused exchange-traded fund. Additionally, it points to the guidelines of President Donald Trump’s administration with respect to cryptocurrency as “hands-off.”

“A potential Joe Biden presidency should shine favor on further appreciation in the price of Bitcoin, in our view. New leadership may change the hands-off policy of the Trump administration — to the detriment of the broader crypto market — and nudge the firstborn benchmark toward the mainstream, improving chances for an ETF.”

The author argues that the stance described above of Joe Biden would affect DeFi’s growth. Both findings are based on the presumption that a “Democratic sweep” would likely pave the way for higher regulatory transparency for the crypto domain. The DeFi domain has recorded exponential growth in 2020, interestingly in a totally unregulated environment.

Bloomberg emphasizes that irrespective of the election result, “Bitcoin’s price will keep going up no matter who’s elected president, but at a moderating pace.”

The document also ends by saying that Bitcoin’s price could hit $80,000 by 2024 if it continues to appreciate during the next US Presidential election at a mere 50% rate it recorded between 2016 and 2020.

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.

Ian Maguire

Ian Maguire

Ian is our resident contributor to the latest going ons in the cryptomarket, keeping up to date with the latest icos and coins


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