- Minsk is planning to launch a blockchain-powered CBDC
- The CBDC will be named the digital Belarusian ruble (DBR)
- The CBDC will be built on the Hyperledger Fabric blockchain protocol
- The CBDC will use distributed ledger technology, also known as blockchain
- The CBDC aims to provide citizens with a high level of safety
- Belarusian firms have been contending with sanctions since February 2022
- The CBDC aims to expand possibilities for integrating the national payment system with the systems of partner countries
- Moscow and Astana have accelerated their own CBDC plans
- The nations envision a network of interoperable CBDCs for trade
- The NBB believes that businesses, commercial banks, and small businesses will have much to gain from the CBDC launch
- China and Russia have also expressed interest in using CBDC smart contracts for financing and subsidies
Belarus is seeking solutions to end the economic sanctions it has been facing, and one potential avenue it is exploring is the launch of a blockchain-powered Central Bank Digital Currency (CBDC). The National Bank of Belarus (NBB) has confirmed its plans to utilize smart contract technology and classify settlements using the digital Belarusian ruble as non-cash transactions.
II. CBDC Details
The NBB has revealed its intention to build the CBDC on the Hyperledger Fabric blockchain protocol, naming it the digital Belarusian ruble (DBR). The coin will leverage distributed ledger technology, also known as blockchain, and aims to provide citizens with enhanced security benefits. However, Belarusian trading firms have been affected by sanctions imposed by Western countries following the war in Ukraine.
III. International Integration
The CBDC is expected to expand integration possibilities with partner countries, with plans to link up with the CBDCs of allies such as Russia and Kazakhstan. This would create a network of interoperable CBDCs, enabling easier trade and potentially reducing dependency on traditional banking networks and currencies.
IV. Benefits for Businesses
The NBB states that businesses and commercial banks would benefit from the launch of the CBDC, as it would lower barriers of entry for new market participants and enable the use of smart contracts. Similar initiatives using CBDC smart contracts have been observed in China and Russia, with the aim of providing financing and subsidies to small businesses.
Belarus is exploring the potential of CBDCs as a means to alleviate the impact of economic sanctions and enhance international trade relationships. The NBB’s plans to leverage blockchain technology and smart contracts in the development of the digital Belarusian ruble demonstrate a commitment to innovation and progress in the financial sector.
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