Prof. Konstantin Ordov criticized the digital ruble project. He suggested that the digitized version of the currency was part of a plan to control society. In his opinion, however, CBDCs may eventually fail and will not fulfill their tasks.
Konstantin Ordov attacks CBDC
In an interview with Regnum Konstantin Ordov, professor of financial management at the Russian University of Economics, entered on the ideas of the Russian central bank related to the digitization of the ruble.
– If the main and only advantage of the digital ruble would be that it would be possible to find out everything about all financial transactions at any time [konsumenta]interest in this digital innovation will disappear even in Russia, not to mention its chances of becoming a global currency – He said.
Let us recall that the Russian central bank, like many other central banks in the world, is currently working on the creation of the digital currency of the central bank (CBDC). It is said that there are chances that this year Russia will launch a pilot platform through which e-currency tests will be conducted.
CBDCs are becoming more and more popular as an idea. After all, they exist mainly as ideas on paper for the time being. As a superpower, China is the closest to full-blown digital yuan. This may take place later this year.
However, some experts are loudly targeting CBDC. Supposedly, the digital ruble will be created “centralized database“ behavior of Russian citizens, which may help in their surveillance.
CBDC – a potential opportunity for Russia
Ordov believes CBDC has “Huge economic potential for Russia”. The condition is the proper implementation of the project.
He added that the central bank should be inspired by cryptocurrencies and explore how to create a system for making cheap and fast transfers. Otherwise digital rubeand “it will not be able to survive on its own and provide potential benefits.”
Russia’s digital currency should be “Integral part of the digital economy” through full integration with the world of blockchain technology, cloud-based technology and smart contracts.
The professor added that this would mean cutting off support for “An inefficient banking sector and a bloated bureaucratic apparatus that monitors and regulates what can be done with algorithms, without corruption or conflicts of interest.”