Russian CBDC & Biometric Data Projects Not Linked, Bank Claims
The Russian Central Bank clarified that its digital ruble and biometric data collection are unrelated, with voluntary participation, aiming to prevent scams.
Key Points
- The Russian Central Bank recently addressed concerns linking its Central Bank Digital Currency (CBDC), the digital ruble, to the country’s biometric data collection.
- Elvira Nabiullina, the Governor of the Russian Central Bank, stated that the two projects are “completely unrelated” and are voluntary for citizens.
- The clarification comes in the wake of increased fraudulent activities where scammers falsely claim that biometric data is needed for converting traditional rubles into digital rubles.
The Russian Central Bank recently addressed growing concerns about the link between its Central Bank Digital Currency (CBDC), the digital ruble, and the country’s biometric data collection initiative. Elvira Nabiullina, the Governor of the Russian Central Bank, clarified that the two projects are “completely unrelated” and both are voluntary for citizens. This announcement comes amid increasing incidents of fraud where scammers solicit biometric data from Russian citizens under the pretense of converting their traditional rubles into digital tokens.
The Russian Central Bank says that its CBDC, the digital ruble, “has nothing to do with” state efforts to collect biometric data.
Do you believe it will stay like this? pic.twitter.com/jYE3pDPzYv
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The Digital Ruble and Biometric Data Collection
Russia began testing its digital ruble in 11 cities across the nation about a month ago. Around the same time, legislation was passed allowing state agencies and banks to collect biometric data, such as facial scans and fingerprints. This legislative move led to the creation of the Unified Biometric System (UBS), designed to act as a national digital remote identification platform.
Misconceptions about the connection between the digital ruble and the biometric data collection efforts have led to a surge in fraudulent activities. Scammers have been targeting Russian citizens through emails and phone calls, falsely claiming that biometric data is required to convert traditional ruble savings into digital ruble tokens.
Central Bank’s Clarification
In a recent press conference, Nabiullina emphatically stated that the digital ruble and the biometric data projects are entirely separate and voluntary. “Biometrics and the digital ruble are two projects that are absolutely unrelated to each other. Both projects – the UBS biometrics submission and the use of the digital ruble – are completely voluntary,” she clarified.
She also shared that more than 50 million Russian citizens have voluntarily submitted their biometric data. Yuri Shabano, the Deputy Head of the Russian Ministry of Digital Development’s Digital Identification Technology Department, added that fewer than 1% of the Russian population have opted out of biometric data collection.Implications and Outlook
The Central Bank’s clarification aims to allay public fears and protect citizens from scammers exploiting these misconceptions. As the digital ruble is still in its pilot phase, it is essential for the Central Bank to maintain public trust by transparently addressing any concerns and misconceptions. By doing so, they hope to avoid compromising the potential benefits and adoption rates of both the digital ruble and the Unified Biometric System.
Conclusion
With the digital ruble and biometric data collection initiatives underway, understanding the distinct nature of these projects is crucial for Russian citizens. The Central Bank’s clarification seeks to untangle the misunderstandings that have led to fraudulent activities, aiming to reinforce public trust and awareness. It also underscores the importance of vigilance and due diligence in the rapidly evolving landscape of digital currencies and data collection technologies.
