Barter Smartplace intends to pilot the Digital Ruble
The existing monetary system needs to be updated, since the technologies for this have already matured. Central banks need to offer something as an alternative to cryptocurrencies and the old fiat money. The solution here is CBDC: digital currencies of central banks. According to the Bank for International Settlements, in 2020, 80% of central banks are working in this direction, and a number of sources claim that by the second half of 2021 we are talking about 90% of banks.
CBDCs are not cryptocurrencies, they are usually closer to cashless settlement and are a disclosure for fiat funds. For a currency to qualify for the CBDC category, it must meet three criteria:
1. Currency exists exclusively in digital currency form;
2. The issue of digital currency goes to the central bank;
3. Currency is a universal means of payment.
Like the traditional fiat monetary system, CBDCs are centralized but even more manageable and transparent to track. Unlike cryptocurrencies (such as BTC and ETH), this form of money is less volatile.
In Russia, the central bank is changing the magnitude of the value observed on the CBDC: “Digital Ruble”. A prototype of the Digital Ruble already exists, but needs active testing. 12 banks have already joined the initiative. Testing requires various types of sandboxes for testing, including NFT marketplaces.
NFTs does not have to be traded for crypto, but it is easier if it is digital money like CBDC. Regardless of the monetary system, the volume of trading in digital assets and tokenized real assets will grow. There is an intention to test the Digital Ruble on the NFT marketplace.
What does Barter Smartplace offer to the central bank?
We sent a letter with an application for testing in the sandbox of the Central Bank of the Russian Federation and this is what we offer for the Digital Ruble:
- Testing the possibility of integrating the Digital Ruble into the trading functions of the NFT trading platform. Integration of the Digital Ruble as the currency of the NFT trading platform. This will open up opportunities for making money in a new market for Russia;
- Elimination of barriers in the possibility of accounting and transfer of property rights through the tokenization of real assets. It is necessary to introduce legal possibilities for using smart contract systems, including public blockchains to record and transfer ownership of digital and real assets and goods;
- Integration of “Gosuslugi” for user identification and entry into the application, as well as through applications of banks (for example, Tinkoff);
Ultimately, all this should lead to the possibility of using the Digital Ruble on the NFT trading platform for trading digital assets and buying real assets for digital ones.
The Need for Dialogue Is Now
At the moment, relations between central banks and supporters of cryptocurrencies are quite tense. In Russia, the Central Bank recently came up with a proposal to ban the circulation, mining and exchange of cryptocurrencies in Russia, but the Ministry of Finance and the FSB opposed it. Recently the President of Russia Putin noted the competitive advantages of the Russian Federation in cryptocurrency mining.
“…we also have certain competitive advantages here, especially in the so-called mining, meaning a surplus of electricity and well-trained personnel available in the country,” Putin said.
Russia has both human and energy resources to build a first-class digital infrastructure. Bans here simply will not be a pragmatic solution, it is necessary to create an adequate legal framework and build bridges between entrepreneurs and regulators. We hope that the Central Bank will sooner or later adopt this point of view.
👉By the way, Barter Smartplace now has its own Discord channel, we invite you to visit it! Sale of unique NFTs will be open soon https://discord.gg/r7Bgnfmzk9
Website https://barter.company
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