With the bank of Russia discussing CBDC transactions charges openly, there is no doubt that the first Russian digital currency will roll out soon. It will be a major step for the financial system of the country since this will be the first time that an official digital currency will be launched in the country.
CBDC, or Central Bank Digital Currency, is a system of digital national currencies that can be regulated and taxed. On the other hand, cryptocurrency still does not have any universal framework. CBDCs have the potential to change the way we transact in everyday life. From fast money transfer to low transaction fees, it will be a true revolution is incorporated with tact and caution. If Russia shows success, many countries might follow suit and roll their in-house Central Bank Digital Currency.
Many financial experts and business houses have talked about the advantages of CBDCs, especially in cross-border payments. At present, governments and corporations lose a huge amount of money they transfer via traditional methods. CBDCs can save the world billions of dollars in transaction fees. JPMorgan recently revealed a report where they proved statistically how much CBDCs would save big corporations. For multinational corporations with offshore operations, CBDCs can be especially beneficial. Even governments will have a better chance at controlling inflation and cash flow. Russia’s CBDC charges are set to be lower than wire money transfer charges, and it might be the beginning of an era of digital currency transfers.