Digital ruble in Belarus

The CBR will be regulated by the National Bank. This means that representatives of the monetary establishment will draw up rules for the use of the new form of money and will control its implementation by the country’s banks, as well as check the work of the system.

Difference from cryptocurrencies

The future virtual form of the Belarusian ruble and, for example, bitcoin, are included in the concept of “digital asset”. However, they cannot be called synonyms. It is more correct to say that VCB and cryptocurrencies are different types of digital money. What they have in common is encryption and the basic principles of blockchain.

1

ByBit

5020 $
bonus for new users!

9.8

VISIT Read Review

ByBit provides convenient and safe conditions for cryptocurrency trading, offers low commissions, high level of liquidity and modern tools for market analysis. It supports spot and leveraged trading, and helps beginners and professional traders with an intuitive interface and tutorials.

2

Binance

Earn a 100 $ bonus

for new users!

9.5

VISIT Read Review

The largest crypto exchange where you can quickly and safely start your journey in the world of cryptocurrencies. The platform offers hundreds of popular assets, low commissions and advanced tools for trading and investing. Easy registration, high speed of transactions and reliable protection of funds make Binance a great choice for traders of any level!

In crypto networks, data is stored in the form of a chain. Each next fragment includes a part of the previous one. Such networks are called blockchain.

The Belarusian digital ruble is almost identical to the usual one and only remotely repeats cryptocurrencies. Details – in the table.

CBDCs of other countries are designed according to similar principles. Digital state assets (for example, in Russia, China and other countries, as well as in the EU states) are similar to cryptocurrencies only in the issue of security. Otherwise, they are fiat money.

Will there be a digital ruble in Belarus

The exact dates of the launch have not been announced yet. The pilot project should go through several stages:

• The first stage is the creation of a prototype. The CBR basics will be developed first. Next, the project is planned to be tested in business-to-business (B2B) payments. The main task is to confirm that the system is fast, scalable and secure.
• The second stage is international payments. After successful completion of the first stage, it is necessary to test the system in performing cross-border transfers. The first partner will be Russia and its digital ruble. At this step, it is important to confirm the security of exchange operations between the central banks of Belarus and other states.
• The third step is payments between individuals and companies. It is important to create a system for secure and fast operation in conditions of a large volume of transactions. In addition, integration of the monitoring system and the possibility of offline payments are planned at this stage.

If the pilot project successfully passes all stages, it will be possible to name the first approximate dates for the launch within the country. Based on global practice, it takes 5-10 years for implementation.

For example, in Russia, the launch of CBDC was first talked about in 2019. In 2023, the project is going through the final stages of testing. By this time, legislators have developed and made legal changes to the country’s codes. Further, the banking and government sectors need additional time for technological preparation. According to experts, the actual launch will take place not earlier than 2025.

Why the digital Belarusian ruble is needed

The introduction of the DBR is a step towards tokenization, as well as greater speed in transactions and their accounting. Cryptocurrencies are no longer a surprise. Therefore, the national economy can take advantage of blockchain technology. On the other hand, the difficulty of regulating and controlling cryptoassets (such as Bitcoin or Ethereum) was the reason for creating a state-owned alternative.

In the new form of the ruble, the National Bank wants to provide citizens with a secure means for cashless payments with low fees.

Prospects

For the digital ruble in Belarus in 2024, 2 goals are voiced. On the one hand, the government aims to create another modern form of the national currency. On the other hand – to organize direct and independent cross-border settlements with other countries.

In 2023, the majority of transfers between states are made with conversion into a third party currency – for example dollars or euros.

If the National Bank creates digital money and makes payments without being tied to it, it will increase the financial independence of the country. To a greater extent, the authors of the document position the virtual form of the ruble in Belarus as a means of payment for the population.

For whom it will be useful

According to the text of the published document, the CBR is designed for the interaction of 3 parties. These are the citizens of the country, the financial system and the state as a whole. Benefits for the population:

• Easy access to the digital account for the CBR. It is planned that the virtual form will be used in any bank in the country.
• Possibility of offline payments. Purchases and transfers will be done even without internet access.
• Development of new financial instruments and services. The project considers the possible creation of services based on smart contracts.

Financial institutions (in particular, the National Bank) will also benefit from the introduction of the virtual form. For example, transfer fees can be reduced and liquidity in the form of paper bills (cash) can be reduced.

For the state, the CBR is a way to more effectively monitor financial transactions of the population.

Which countries already have digital currency

Plans to create virtual forms of money were announced by 120 states. Seventy-five of them have started development. Only 4 countries were able to realize the projects after the test stages. Data on the current CBDC – in the table.

Frequently Asked Questions