In a recent stance, Belarus is moving ahead with central bank digital currency (CBDC) plans. Sources reveal that the primary focus and intention behind Belarus’s CBDC seems to follow suit with Russia’s CBDC development plans.
According to local media reports, Belarus plans to launch a digital version of the Belarusian Ruble for use in “cross-border” payments. Reportedly, the National Bank of the Republic of Belarus (NBRB) has earmarked the launch of CBDC as one of its most “significant” projects of recent years.
One of our most significant large-scale projects will be the introduction of the digital Belarusian ruble and its use at the cross-border level.
Dmitry Kalechits, the NRBR’s Board’s Deputy Chairman
Further, Kalechits explained that the bank already had a “definition” for the CBDC, which it considers “a legal tender that performs all the functions of money.” Sources reveal that Kalechits’ comments come months after Pavel Kallaur, the bank’s governor, spoke of the NRBR’s plans to create a CBDC “experiment” with “a narrow group of participants.”
While media reports claimed that the central bank governor had said that both commercial “banks and individuals” would take part in the CBDC pilot, Kallaur appeared to hedge his bets at the time, claiming that the NRBR needed to “decide on the feasibility” of a digital Belarusian ruble. Additionally, the governor said that Presidential approval was still required, noting at the time that a final “decision will be made at the level of the head of state.”
It is worth noting that Belarus is carrying a similar approach to CBDCs as some of its neighbors like Russia. Recently, Russian authorities expressed similar sentiments, with some suggesting digital Russian Ruble could be compatible with global CBDCs like digital Chinese Yuan.
Additionally, Kalechits explained that settlements with the digital ruble would be legally classified as non-cash payments. Notably, this wording echoes the terms of Moscow’s own CBCD law.
As reported by Todayq News, Russia’s CBDC trial is now underway, with over a dozen commercial banks now piloting digital Ruble transactions with selected groups of customers. Firstly, the news of the CBDC had come from the central bank in May. Shortly after, the NRBR pledged to make an “appropriate decision” on a CBDC launch “by the end of the year.”
However, it appears that the bank then decided to expedite the process has already edged closer to a rollout since May as it looks to align its CBDC plans with those now being formulated in Russia. Simultaneously, amid this CBDC progression, Belarus has cracked down on the crypto industry and proposed banning P2P transactions in early July.