Digital Ruble

Assessing the Criminological Risks of the Proposed Model

Authors

DOI:

https://doi.org/10.26512/lstr.v14i1.40388

Keywords:

Digital Currencies of Central Banks. Digital Ruble. Regulation. Criminological Risks. Digital Law.

Abstract

[Purpose] The article deals with the prospects of introducing the digital ruble within the territory of the Russian Federation.

[Methodology/Approach/Design] The methodological basis of this study is a set of methods of scientific knowledge, among which the main place is taken by the methods of historicism, consistency, analysis and comparative law. Having conducted a detailed review of global trends in this area, authors identified the main reference points that are relevant for most countries where pilot CBDC projects are being implemented.

[Findings] The analysis of the key report, issued by the Central Bank of Russia, on the prospects for introducing the digital ruble allowed us to assess the architecture of the models proposed by the Central Securities Market, their advantages, and their disadvantages.

[Practical Implications] Taking into account the assessment of statistical indicators on the Russian crime rate, the state of Russian criminal legislation, the concerns of institutional market participants, and the positions of mega regulators around the world, a criminological analysis of the potential risks of introducing the digital ruble was made.

[Originality] The results of the study will be useful to both legal scholars who deal with issues of comparative law, and for practical specialists. the article provides detailed explanations about the theoretical and applied aspects of the introduction of the digital ruble. For the first time, the authors gave a theoretical justification for the risks associated with the introduction of a digital currency.

Downloads

Download data is not yet available.

Author Biographies

Zarina Khisamova, Krasnodar University of the Ministry of Internal Affairs of Russia

Zarina Khisamova is a head of scientific department of Krasnodar University of the Ministry of interior of Russia. In 2016 she successfully get her PhD thesis. She is a participant of international research conferences and forums, constantly reports her scientific developments and posts her articles in lead world publications. Her research interests include studying the problems of criminal law counteraction to IT crimes committed in the financial sector, criminal law protection of relations in the digital economy, and creating a regulatory environment for the introduction of new digital innovative products. She is the author of more than 50 scientific and educational works, and is actively engaged in expert activities.

Elina Sidorenko, Moscow state Institute of international relations (University)

Elina Sidorenko is a professor at the Department of criminal law, criminal procedure and criminalistics, director of the Center for Digital Economy and Financial Innovation MGIMO (U). In 2002, professor Sidorenko successfully get her PhD thesis on the topic: "Negative behavior of the victim as a circumstance that affects the differentiation of responsibility and individualization of punishment of the subject of crime". In 2013, she successfully got Doctor of law degree. Sidorenko E. L. is actively engaged in expert activities. She is a member of the expert Council of the presidential Administration of the Russian Federation on combating corruption, member of the Commission on observance of requirements to office behavior of the persons replacing positions of Federal state service in the presidential Administration of the Russian Federation, Member of expert Committee for security and combating corruption of State Duma of the Federal Assembly of the Russian Federation and the Committee on financial regulation, the Head of the working group on risk assessment of turnover of the cryptocurrency State Duma of the Federal Assembly of the Russian Federation, Member of the working group of the Public chamber for promoting the reform of justice, A Member of the Advisory Council on the status of criminal policy in the Russian Federation Council of Federation of the Federal Assembly of the Russian Federation. She takes an active part in the work of international organizations: participates as part of the Russian delegation in meetings of the OECD anti-Corruption Working group and events of the OECD anti-Corruption network for the implementation of the Istanbul action plan, at the events of the group for the review of the implementation of the UN Convention against corruption and the Conference of the States parties to the UN Convention against corruption, events of the office of the OSCE economic and environmental Coordinator. She is the author of more than 150 scientific and educational works.

Maxim Inozemtsev , Moscow state Institute of international relations (University)

Maxim I. Inozemtsev is an associate professor of the Department of Private International and Civil Law, Head of Dissertation Council Department, MGIMO-University, Editor-in-Chief of Digital Law Journal. He has worked at MGIMO-University giving lectures on Corporate Law of Foreign Countries, Civil Law and International Private Law. Dr. Inozemtsev also worked as an Associate for Baker Mckenzie. In 2017 he defended a Ph.D. thesis on parties liability for non-performance or improper performance of obligations under a shareholders’ agreement. In 2020 Maxim I. Inozemtsev founded the Digital Law Journal, an international electronic scientific journal of law and economics, which is an important scientific, educational, expert and analytical infrastructural platform for the development of the digital economy. The project aims to lay scientific foundations for both a wider understanding of existing digital technologies, and the specific features and prospects for their full-scale implementation in the regulatory field. Maxim I. Inozemtsev is also a member of the Association of Science Editors and Publishers. His current professional and research interests include Digital Law, Civil and Corporate Law, German Trade, Civil and Corporate Law.

Ambassador Pierre von Arx , Tthe Swiss Federal Institute of Technology in Zürich (ETH)

Ambassador von Arx entered the Swiss Federal Department of Foreign Affairs in 2009 as Deputy Head of Delegation for Security Policy Issues of the Permanent Mission of Switzerland to the OSCE and United Nations in Vienna. He dealt with issues of conventional arms control and disarmament, European security architecture, security governance, transnational threats, cyber security, combating terrorism, organized crime and drug trafficking. From 2006 to 2009 he was Senior Military Advisor of the Swiss Delegation to the OSCE and acted as OSCE Co-ordinator for military confidence and security building measures. Prior to this experience, he held different positions of commander and staff officer at the Swiss General Staff and Swiss Armed Forces.

Ambassador von Arx holds a PhD in Natural Sciences from the Swiss Federal Institute of Technology in Zürich(ETH) with a specialization in genetics and molecular biology. He is fluent in French, German, English and possess working knowledge in Spanish and Russian.

Doctor of the Swiss Federal Institute of technology in Zurich  

 

 

References

Not applicableALMAKUNOVA R. (IN PRESS) The conclusion is made: the theft of money from accounts in 2020 doubled. 13 Oct. 2020 Available at: https://iz.ru/1072799/roza-almakunova/vyvod-sdelan-krazhi-deneg-so-schetov-v-2020-m-vyrosli-vdvoe. (in Russian).

AUER R. et al. (2020) Rise of the central bank digital currencies: drivers, approaches and technologies. BIS Working Papers. 880 Available at: https://www.bis.org/publ/work880.htm.

BANK OF CANADA, BANK OF ENGLAND, MONETARY AUTHORITY OF SINGAPORE. (2018) Cross-Border Interbank Payments and Settlements: Emerging opportunities for digital transformation. Emerging opportunities for digital transformation. November 2018. 68 p. Available at: https://www.mas.gov.sg/-/media/MAS/ProjectUbin/Cross-Border-Interbank-Payments-and-Settlements.pdf?la=en&hash=5472F1876CFA9439591F06CE3C7E522F01F47EB6.

BARONTINI C., HOLDEN H. (2019) Proceeding with caution – a survey on central bank digital currency. January 2019. 24 p. Available at: https://www.bis.org/publ/bppdf/bispap101.pdf.

BARRDEAR, J. & KUMHOF, M. (2016). The macroeconomics of Central Bank issued digital currencies. Bank of England. Working Paper 605 (2016). Available at: https://www.bankofengland.co.uk/working-paper/2016/the-macroeconomics-of-central-bank-issued-digital-currencies.

BECH, M. & BOAR, C. (2019). Shaping the future of payments. Analysis of the 2018 Red Book Statistics Available at: https://www.bis.org/statistics/payment_stats/commentary1911.htm.

BITCOIN.COM. IMF Says Only 23% of Central Banks Can Legally Issue Digital Currencies. (IN PRESS) 16 Jan. 2021 Available at: https://news.bitcoin.com/digital-currency-money-imf-central-banks-legally-issue-digital-currencies/.

BOAR C., HOLDEN H., WADSWORTH A. (2020). Impending arrival – a sequel to the survey on central bank digital currency by Monetary and Economic Department. BIS Papers No 107. January 2020.

CARSTENS A. (2020). Shaping the future of payments. BIS Quarterly Review. 17 Mar. 2020 Available at: https://www.bis.org/publ/qtrpdf/r_qt2003e.pdf.

CENTRAL BANK OF RUSSIA. (2020). Digital ruble. Report for public consultations. Moscow, 2020.48 p.

CHERNYSHOVA Y. (IN PRESS). Banks have warned of a surge in the theft of pre-approved loans. 31 Oct. 2020. Available at: https://www.rbc.ru/finances/31/10/2020/5f9afd879a79470cfa72e8e7. (In Russian).

CHERNYSHOVA Y. (IN PRESS). Sberbank estimated how much the stability of the digital ruble will cost protecting a new form of currency from fraudsters can cost more than 20 billion rubles. 03 Dec 2020. Available at: https://www.rbc.ru/finances/03/12/2020/5fc784d29a79478cbf802b14. (In Russian).

CLIFFORD CHANCE. (2020). Central Bank Digital Currencies And Stablecoins – How Might They Work In Practice? 21 September 2020. 10 p. Available at: https://www.cliffordchance.com/briefings/2020/09/central-bank-digital-currencies-and-stablecoins--how-might-they-.html.

DIGITAL CURRENCY OF THE CENTRAL BANK. (2021). Available at: https://cbdc.ru.

INOZEMTSEV M.I. (2021). Taxonomy and typology of crypto-assets: approaches of international organizations in Engineering Economics: Decisions and Solutions from Eurasian Perspective, 139 Lecture Notes in Networks and Systems (S Ashmarina et al. eds., 2021). Available at: https://doi.org/10.1007/978-3-030-53277-2_14.

FILIPENOK A. (IN PRESS) The EU banned the circulation of the Facebook Libra cryptocurrency. 06 Dec. 2019. Available at: https://www.rbc.ru/economics/06/12/2019/5de984cc9a7947420136eb08. (In Russian).

FINANCIAL STABILITY BOARD. (2019). To G20 Finance Ministers and Central Bank Governors. 13 Oct. 2019. Available at: https://www.fsb.org/wp-content/uploads/PXX1019.pdf.

GOLDMAN SACHS (2020) Equity Research. Reinventing the Yuan for the Digital Age. 2020. Available at: https://www.goldmansachs.com/insights/series/goldman-sachs-research/.

GOSTEVA E. (IN PRESS). Double write-offs»: how bailiffs rob Russians. 2019. Available at: https://www.gazeta.ru/business/2019/06/21/12433093.shtml. (In Russian).

GRISHCHENKO V., MOROZOV A., PETRENEVA E., SINYAKOV A. (IN PRESS). What will change for banks and their clients with the introduction of the digital ruble. Analytical note of Central Bank of Russia. January 2021. Available at: https://cbr.ru/Content/Document/File/118208/analytic_note_20210126_dip.pdf. (In Russian).

JOHN H., WILSON T. (2020). G 20 sets ground rules before Facebook's Libra Stable Coin. 14 Apr. 2020. Available at: https://www.reuters.com/article/us-g20-regulator-stablecoins/g20-sets-ground-rules-ahead-of-facebooks-libra-stablecoin-idUSKCN21W0TU.

KHISAMOVA Z.I. (2020). The Concept of Digital Currencies of Central Banks: The Main Risks in Terms of Compliance with the Requirements of AML ("Countering Money Laundering") and KYC ("Know Your Client"). Actual Problems of Economics and Law. 2020; 14(3): 508-515. (In Russian). Available at: https://doi.org/10.21202/1993-047X.14.2020.3.508-515.

KIYUTSEVSKAYA A.M. Fintech: (2019). Current Trends and Challenges for Monetary Policy, (4) Voprosy Ekonomiki. 2019; (4): 137-151. (In Russian). Available at: https://doi.org/10.32609/0042-8736-2019-4-137-151.

SIDORENKO, E.L. (2020). Stablecoin as a new financial instrument in Digital Age: Chances, Challenges and Future. ISCDTE 2019, 84 Lecture Notes in Networks and Systems (S Ashmarina et al. eds., 2020). Available at: https://doi.org/10.1007/978-3-030-27015-5_75.

THE ASSOCIATION OF RUSSIAN BANKS. (IN PRESS). The Association of Russian Banks discussed the report of the Bank of Russia on the digital ruble. 2 December 2020. Available at: https://asros.ru/news/asros/v-assotsiatsii-bankov-rossii-obsudili-doklad-banka-rossii-o-tsifrovom-ruble/. (In Russian).

Downloads

Published

2022-05-20

How to Cite

KHISAMOVA, Z.; SIDORENKO, E.; INOZEMTSEV , M.; VON ARX, P. Digital Ruble: Assessing the Criminological Risks of the Proposed Model. Law, State and Telecommunications Review, [S. l.], v. 14, n. 1, p. 52–70, 2022. DOI: 10.26512/lstr.v14i1.40388. Disponível em: https://periodicos.unb.br/index.php/RDET/article/view/40388. Acesso em: 26 sep. 2022.