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The central bank takeover of Russia
All transactions will be monitored. Soon there will be full control via the digital ruble
Central banks. They’re a touchy subject for a lot of people and with fairly good reason.
Like all other central banks, the Bank of Russia enjoys a special legal status making it independent from the Russian government while simultaneously giving it access to the full machinery of state power in order to carry out and enforce its wishes. Civilization-altering power with very little (one might argue zero) “democratic” accountability—it’s a pretty sweet deal.
Of course, proponents of this curiously global system insist it must be this way to avoid “political inference” with economic policy. Bless their hearts.
Given all of the above, we were overjoyed by the news that Russia’s central bank will soon begin keeping a very close eye on nearly all forms of financial transactions in the country.
According to RBK, beginning in January 2022, the Bank of Russia will “request information about all p2p transactions (from an individual to an individual), including the personal data of senders and recipients of funds.”
As follows from the document, the report should include all incoming and outgoing money transfers between individuals, which are carried out according to the following scenarios:
from card to card;
from account to account;
from e-wallet to e-wallet, from card to wallet and vice versa;
from the subscriber's account of the telecom operator to the wallet or card and vice versa;
payments through the Fast Payment System;
cross-border transfers of funds by individuals;
money transfers without opening an account, including through payment terminals of payment agents;
transfers of an individual between their own accounts within the same credit institution;
transfers through money transfer systems, for example, Western Union, CONTACT, etc.
Peer-to-peer transactions do not include the transfer of funds to deposit accounts, accounts for repayment of loans, brokerage / investment accounts, commissions of credit institutions for servicing, as well as transfers carried out by legal entities and individual entrepreneurs, the Central Bank explained.
One has to admire the loopholes: investment services, transfers made by legal entities—you know, the types of transactions typically associated with rich people.
Why the need for such close supervision? Is the Bank of Russia concerned too many people are wasting their money on World of Tanks skins?
No, Russia’s omnipotent central bank is protecting citizens from “illegal online casinos, organizers of financial pyramids, forex dealers and cryptocurrency exchangers.”
Notably, earlier this month, the Bank of Russia said it wanted a blanket ban on all cryptocurrency investments—ostensibly to shield Russians from risky financial decisions.
Does this mean Russia’s central bank is anti-crypto? Of course not. It is madly in love with one particular cryptocurrency, the Bank of Russia-issued digital ruble. Everything else is a “shitcoin,” to borrow hip crypto lingo.
The digital ruble is a Central Bank Digital Currency (CBDC). Probably you have heard of these things.
The digital ruble is on a centralized ledger, meaning the revolutionary concept driving the cryptocurrency craze—the idea that decentralized digital coins are “trustless,” meaning you don't have to rely on or put faith in a third party—is rendered completely null and void. You might as well use an editable MySQL database to “guarantee” transactions. That’s basically the plan, actually.
A gentleman by the name of Tim Hinchliffe wrote a fascinating article about what the digital ruble “means,” in concrete terms. We urge you to read the entire thing, but here are some excerpts:
Speaking at the annual Cyber Polygon cybersecurity exercise, Bank of Russia Deputy Governor Alexey Zabotkin laid out the central bank’s plan for a digital ruble. […] With these electronic bank notes, users would be able to set limits on what types of purchases can be made.
The Russian central bank authority said that parents could give the digital currency to their children with certain restrictions, such as blocking them from buying junk food. […]
“That would be a useful functionality for a customer, and of course you can come up with hundreds of other similar use cases,” Zabotkin added. […]
According to the Russian central bank exec, the digital ruble’s “last mile access will remain in the hands of the commercial banks, plus possibly other authorized and properly supervised payment service providers. […]
Additionally, Russia’s central bank is planning to implement a digital ruble where all transactions would be recorded on a centralized ledger. […]
“The Bank of Russia will maintain the centralized ledger on the Bank of Russia’s technological platform, and all transactions will be recorded on this ledger,” the central bank exec added.
Under this CBDC scheme, all transactions would be recorded on a single, centralized ledger.
This barely does the article justice. You just have to read it all as you quietly weep for the future.
And the fun is scheduled to begin soon!
The DEITA.RU portal spoke about monetary reform, which will begin… in [early] 2022. The reform will include the renewal of ruble bills and the introduction of the digital ruble. [..]
[The head of the Central Bank] Elvira Nabiullina said that if the digital ruble is introduced, Russians will be able to receive a digital pension. Also, according to her, the Central Bank is working on a technology that will allow access to the digital ruble even without the Internet.
Ah yes, force elderly people who are 100% reliant on the Russian government to feed themselves to use these trash digital coins first—that’s the ticket.
Guys, we’re being soul-raped by bankers. There is no such thing as “national sovereignty.” Even in Russia. Sorry but it’s true. Sorry.