The Central Bank of the Russian Federation is studying the possibility of tokenization of non-cash payments – Bits Media

The Association of Russian Banks proposed the Central Bank of the Russian Federation to conduct non-cash payments in tokenized form. To begin with, for social payments and carrying out money under government contracts.

The Bank of Russia took note of the proposals. According to the regulator, tokenization non-cash payments will increase the transparency of spending funds by budget organizations, and private companies.

The proposal was first voiced by representatives of the Association of Russian Banks led by Sber at the beginning of 2021 of the year. Then the Central Bank was skeptical about the idea, perceiving tokenization as an alternative to the digital ruble. Now tokenization is positioned as an addition to CBDC.

Details of the technical solution are not disclosed. The authors of the idea believe, that in the future it is worth tokenizing absolutely all non-cash transfers, transacted in fiat money.

“If the regulator approves the tokenization project, there will be potential for cost reduction and simplification of control functions. for instance, those, what is associated with contract financing and tracking the intended use of credit transactions", — says Alexander Chernoshchekin, head of the digital business unit of Promsvyazbank.

Participants discussing the concept note, that the project to tokenize non-cash payments corresponds to the strategy of banning cryptocurrencies, which is promoted by the Central Bank. The regulator sees prospects in blockchain and asset tokenization and is trying to use technology for its benefit. But at the same time seeks to ban systems, which he cannot control.

Earlier, State Duma deputies Anatoly Aksakov and Andrei Lugovoy said, that radical restrictions in the cryptocurrency industry are able to expose Russia "a laughing stock on the whole world".