Digital Ruble: Dangerous Trends, Zero Percent, Nigerian Experience.

Russian authorities talk about the benefits of the introduced digital ruble. However, some experts believe that it is a means of controlling citizens, their finances and needs. Such money cannot be saved and can only be spent within limits. Unsuccessful examples with digital currencies were worked out in the poorest countries of Africa.

The digital ruble will be put into circulation by the end of 2023, the Ministry of Finance said. Such system is intended to be the third variety after cash and non-cash currency circulation. The digital ruble will be a means for payments and payments, but will not have the function of accumulation, a credit resource and without interest charges. Each month a citizen will be able to top up their electronic wallet not more than 300 thousand rubles. It seems that no authorized transfer of pensions or other payments into the digital system is planned.

To use the digital ruble, it is necessary to create a wallet in an online bank. Then scan the QR code and make the payment or transfer. To replenish the wallet, non-cash rubles should be exchanged for digital rubles, or cash should be put to the account and also exchanged. This form of money circulation differs from cryptocurrency: digital rubles are issued by the Central Bank, while crypto has no single issuer and regulator.

Financial authorities represented by the heads of the Central Bank and representatives of the Government have repeatedly stated that all information in transactions with digital rubles is protected by bank secrecy and no control over citizens is provided. Nevertheless, behind the outwardly benign picture can hide dangerous projects. First of all, the upper limit for depositing electronic wallet is declared in the amount of 300 thousand rubles per month. Above that is forbidden, which already raises questions. This kind of money not only has spending limits, but it can also only be spent for specific purposes. This is a kind of food stamps, which can not be used in any other way. In addition, such a user will be recorded in a single Central Bank registry, which will be connected to his bank cards. And this is a means of controlling people’s finances, where accounts can be blocked at any time. It is no coincidence that the authorities of Russia prohibit the use of alternative in the form of cryptocurrency in the country. They are also trying to limit the circulation of cash rubles as much as possible. However, three-quarters of Russians don’t want to give them up for a very simple reason: “Cash is independence and unaccountability.

A number of other questions arise as well. Money is not only a means of payment, but also of accumulation. If there is no interest on the balance and deposits in the digital ruble, why should legal entities and individuals keep it when inflation is high? If individuals will receive any payments in digital, what is the point in them if it depreciates. Besides, how will the legal framework be structured? No changes have been made to the federal law “On Banking”, on what legal basis will banks be engaged in this area?

Also, experts believe that in the future, digital rubles will mimic the function of “basic income” for limited purchases. For example, no more than 50 thousand can be spent on food. But it will not be possible to exceed this limit. You can be banned from making purchases at any time, regardless of the price, and deprived of access to groups of goods or services. Or even prohibit any actions with your money without giving a reason. As a result, this system loses the function of savings, because there is no point in saving and saving if it is impossible to spend more than the established norm. In theory the idea of digital money would be interesting if based on voluntary self-restriction of consumption. In this case the freed resources could be used for the development of the country. But under current conditions, development should be forgotten.

Source: https://antifinrazvedka.club/czifrovoj-rubl-opasnye-tendenczii-nulevoj-proczent-nigerijskij-opyt/?utm_source=Telegram&utm_medium=Antifin&utm_campaign=Post_8_05&utm_term=2kv_2023