Russian Mobile Operators To Adopt Digital Ruble With Smartphones

News / 16.02.2021

Russian mobile operators are gearing up to introduce wallets for the digital rubles, according to reports. The European country is currently developing its digital currency to increase financial inclusion within its region. 

Digital Wallets In Development 

This development was revealed by local media outlet Izvestia in a report published on Tuesday, February 16. According to the report, mobile operators have expressed interest in introducing wallets for digital rubles on smart devices. 

Two of the largest mobile operators Beeline and Megafon, revealed their position on the digital wallets’ ongoing development. A representative of Beeline stated that the mobile operator was exploring different aspects of the digital Ruble

This included maintaining wallets on smart devices in their current format and the possibility of performing p2p payment transactions. The mobile operator is also exploring the prospect of offline transactions and other financial-related services. 

Megafon meanwhile stressed that linking a wallet to a subscriber number will enable flexible management of digital currency. Since it would allow the user to store funds, transfer and pay with them. Megafon further stated that operators would ensure rapid launch and distribution of the digital Ruble thanks to the expansion of communication services in Russia.  

Russia Exploring The Risks Of Digital Ruble

Despite the immense potentials of issuing a digital currency, the Russian government is still exploring the digital Ruble risks.  Several top banks have explained that although storing digital rubles in mobile phones and smartwatches is convenient for the average user. It is safer and more efficient to leave settlements with credit institutions.

This is because as more devices get created, it becomes vital to centralize wallets and accounts. This according to Sergey Shcherbinin, Director of Information Technology Development at UBRD.  Nevertheless, there are expectations that the digital Ruble will be released before the last quarter of the year. The digital Ruble is a central bank digital currency (CBDC) and pegged to the existing fiat currency.

Olowoporoku Adeniyi is a blockchain enthusiast and crypto evangelist. Currently he loves all things crypto and covers happenings within the blockchain space.