Скриншот видеозаписи
First Deputy Chairman of the National Bank of Belarus Alyaksandr Yahorau explained in the House of Representatives how the digital Belarusian ruble system will function. Following his presentation, deputies adopted the draft law on the digital ruble in the first reading.
According to him, the operator of the digital ruble payment system will be the National Bank of Belarus, which will also define the rules of its operation and maintain the system.
“The opening of digital accounts by the National Bank for a client will be carried out only through the bank where the client is serviced, using remote banking systems. For legal entities, this is the so-called internet banking or client-bank system. For individuals, the most common option is mobile banking, which is probably used by the majority of citizens of the Republic of Belarus. Under a digital account agreement, the National Bank undertakes to open a digital account for the client to store digital Belarusian rubles, as well as to credit and debit them. A fee may be charged to the holder of a digital account for services provided. A client may have only one digital account in digital Belarusian rubles. No interest will be accrued on the balance of digital Belarusian rubles held in the digital account. It is also permitted to suspend transactions on a digital account, confiscate digital Belarusian rubles, enforce recovery, and impose seizure on digital Belarusian rubles,” Yahorau said.
He also explained to deputies how the digital Belarusian ruble differs from non-cash money.
“A question may arise as to why another form of non-cash money is needed if non-cash money already exists. In fact, the digital Belarusian ruble is a digital form of cash. Yes, it will be non-cash, but it is a digital form of cash for two reasons. First, we will be able to precisely identify each ruble in the system. The digital Belarusian ruble will make it possible to trace the entire path of this unit. The second important nuance is that cash does not create a multiplier effect. Non-cash money allows money to be multiplied in the economy. That is, through the issuance of, say, 100 Belarusian rubles by the National Bank, due to the multiplier effect, 200, 300, or even 400 rubles can enter the money supply. In the case of the digital Belarusian ruble, if the issuance amounts to 100 Belarusian rubles, then no more than 100 Belarusian rubles will ever circulate in the economy. This is a good and reliable tool for controlling the money supply directed toward specific purposes,” he said.
According to Yahorau, the digital ruble will make it possible to control the targeted use of budget funds and will create additional conditions for payments in the national currency.
“Third, it will improve the user experience through the use of smart contracts and the ability to use payment services without being tied to a single bank, thereby creating conditions for the digitalization of the economy, reducing the cost of servicing transactions and operations, and fostering competition in the country’s payment market. Fourth, it will reduce dependence on imported payment technologies and, accordingly, on international payment systems. Fifth, it will reduce transaction costs when making payments by accelerating the turnover of clients’ funds,” Yahorau explained.