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Russia To Trial Digital Ruble Settlements For Real Estate Deals

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Russia To Trial Digital Ruble Settlements For Real Estate Deals

The Central Bank of Russia and participating commercial banks want to test various types of payments with the digital ruble, the Russian press reported. The plan is to experiment with smart contracts and transactions related to real estate and crypto asset purchases.

Bank of Russia to Launch Smart Contracts on Digital Ruble Platform

Russia’s central bank intends to start implementing smart contracts with the digital ruble next April, the daily Izvestia unveiled this week, quoting the regulator. Until then, the new incarnation of the national fiat will be put to the test in various scenarios, including automated payments and other transactions between individual users and businesses, like real estate acquisitions.

Bank of Russia finalized the prototype platform of its central bank digital currency (CBDC) in December, 2021. In January of this year, a dozen Russian banks joined the pilot project. At its first stage, participants are issuing digital rubles, setting up wallets for banks and citizens, and making transfers between them. Smart contracts will be presented during the second stage of the pilot.

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Smart contracts facilitate the execution of contract terms without involving a third party as a guarantor, Promsvyazbank (PSB) explained. The money is kept in a smart contract wallet on the digital ruble platform and sent to the seller’s wallet as soon as the property rights are transferred. Rosbank added that the technology can be employed for targeted financing of a real estate purchase by a lender.

The digital ruble smart contracts will allow large businesses to carry out complex transactions, Vneshtorgbank (VTB) elaborated for the article. The bank, which is also participating in the pilot, told Izvestia that it plans to begin testing the purchase of digital financial assets (DFAs) with digital rubles in September.

DFAs is the current legal term describing cryptocurrencies and tokens in Russia. A new bill “On Digital Currency,” designed to expand the regulatory framework for crypto assets, will be reviewed by Russian lawmakers this fall. Financial and technological restrictions imposed on Russia over its war in Ukraine may give an impulse to the digital ruble project as well, experts in Moscow say.

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Acquisitions, CBDC, Crypto, Cryptocurrencies, Cryptocurrency, deals, DFAs, Digital Assets, Digital Currency, digital ruble, Payments, Purchases, Real estate, Regulation, Regulations, restrictions, Russia, russian, Sanctions, Smart Contracts

Do you expect Russia to accelerate the project schedule for the digital ruble currency? Tell us in the comments section below.

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Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Acquisitions

Report: Ripple CEO Brad Garlinghouse Hints At Future Mergers And Acquisitions

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Report: Ripple CEO Brad Garlinghouse Hints At Future Mergers And Acquisitions

While visiting the World Economic Forum (WEF) event in Davos, Ripple Labs CEO, Brad Garlinghouse discussed the firm’s growth opportunities and despite the crypto economy’s downturn, Garlinghouse spoke about future mergers and acquisitions.

‘I Think We’re More Likely to Be the Buyer,’ Ripple Labs CEO Brad Garlinghouse Said During an Interview in Davos

Just recently, during the WEF conference in Davos, Ripple Labs executive Brad Garlinghouse told CNBC in an interview that Ripple Labs has “a very strong balance sheet.” Garlinghouse spoke about Ripple Labs possibly participating in merger and acquisition (M&A) deals and Ripple Labs will be the buyer. “We’re now at a stage of growth where I think we’re more likely to be the buyer versus the … seller,” Garlinghouse told the CNBC author Arjun Kharpal. Garlinghouse further noted that he expects to see an increase in M&A in the blockchain industry.

“I think there’ll be an uptick in M&A in the blockchain and crypto space,” Garlinghouse explained during his interview. “We haven’t seen that yet. But I think that’s likely in the future. And I certainly think as that unfolds, we would consider things like that.”

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There has been a number of acquisitions in the crypto space during the latter half of 2021 and the first quarter of 2022. For instance, Coinbase acquired the firm Fairx Exchange in January 2022, and Opensea acquired Dharma Labs that month as well. In February, the ethereum software company Consensys announced the acquisition of the Mycrypto wallet. The following month in March, the fractional investing company Public announced the acquisition of the digital collectibles and non-fungible token (NFT) technology startup Otis.

In April, the payments and checkout and shopper network, Bolt, acquired Wyre for $1.5 billion. Moreover, at the end of May, Huobi Global revealed it acquired the Latin American crypto exchange Bitex. The Ripple Labs CEO’s statements in Davos also follow the billionaire and FTX co-founder Sam Bankman-Fried talking about spending billions on M&A deals. Garlinghouse explained in Davos that “there’s a lot of room for growth in crypto, and we’re looking at a lot of different niches for it.”

Meanwhile, the crypto asset xrp (XRP) is the sixth-largest market capitalization among more than 13,400 crypto assets in existence today. Year-to-date, however, XRP has lost 59.2% against the U.S. dollar and 34% was lost during the past 30 days. XRP also did not see an all-time high (ATH) seven months ago as many other digital assets did back in November 2021. XRP’s last recorded ATH was over four years ago on January 7, 2018, following the 2017 crypto bull run. XRP is down more than 88% since that ATH and its market valuation represents 1.49% of the entire crypto economy’s $1.28 trillion in value.

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Acquisitions, Brad Garlinghouse, CNBC Interview, crypto economy, Davos, FTX co-founder, M&A, mergers, Mergers and acquisitions, Ripple, Ripple Labs CEO, Ripple XRP, Sam Bankman-Fried, Token, WEF, World Economic Forum, XRP, Xrp (XRP)

What do you think about the statements Garlinghouse made in Davos about future mergers and acquisitions? Let us know what you think about this subject in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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