Central Bank of Russia Reviews Potential Benefits and Drawbacks of CBDCs

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The central bank of Russia has reviewed the potential benefits and drawbacks of central bank digital currencies (CBDC) in a policy brief published on April 18.

In the document, entitled “Is there a future for central bank digital currencies,” the Central Bank of the Russian Federation outlined a number of potential benefits of CBDCs, such as their capability to reduce transaction costs in the economy, as well as provide an asset that is less risky and more liquid. However, the Bank of Russia noted that CBDCs’ potential to minimize transaction costs can be only realized in case a technical solution for CBDCs will offer a better tool in terms of ease of use in payments and savings, as compared with fiat money and debit cards. See more for yourself here.