The Financial Times reported in October that the European Central Bank (ECB) will introduce its own digital currency, known as the EUR/USD in a single-child digital currency system named after its founding sponsor, Mr. Mario Draghi. Mr. Draghi is currently the President of the Reserve Bank of Greece and a member of the European Central Bank. The move marks a significant change in the global monetary landscape as the ECB, after years of trying to control its own currency movements, is now open to the idea of fully participating in a unified European payment system. “The introduction of Eurozone money will help to enhance the overall quality of the euro as a major currency and strengthen the euro area as a payment system,” Draghi said in a statement. “This decision builds upon the previous efforts of the ECB to become a more important part of the monetary union.”
According to an analysis by The Atlantic Council, UFA, which is originally planned as a Russian-led effort, has already achieved its first success among cities in Russia. The study further added that the impact of the move on UFA is yet to be fully felt. The move, it said, is likely to boost tourism to Moscow, increase trade and investment, and attract investment to Kazan, a resort city on the shores of the Sea of Azov. But with the current political and economic situation in China and other Asian countries, particularly in Shanghai, Beijing may look to distance itself from UFA, rather than integrate it. The research also added that there are doubts over whether the new digital currency set up by the ECB can survive the pressures of the international trading system.
The research also showed that the new digital currency will most likely face tough competition from UFA and Dash. According to the same study, two out of three respondents indicated that they are unlikely to adopt the new payment scheme due to the high risk associated with it. Moreover, only 5.2 percent of respondents indicated that they will begin using it immediately, while the rest are still thinking about whether or not it is feasible at all. Most of these people, according to the analysts, are from the republic of Bashkortostan, where ufa plays a crucial role in everyday life. Besides, a large number of officials who are leading government agencies in Bashkortostan are against adopting ufa as the system of payment.
The main reason cited for this is that the system of payment is currently against the law in the Russian Federation. The spokesperson of the government of Rashtrov province, Rustam Zakhidiyev, told ITAR-Tass that the current law banning the adoption of foreign currency is applicable in all cases, including ufa. The spokesperson did not give any explanation as to why the ban was introduced in the first place, but most officials believe that it was implemented in order to control the inflow of foreign currency, particularly the cash amount coming from the USA and Europe. The ban has so far been in place for three years. Since the ban was implemented, officials have stopped accepting payments in rubles and other convertible currencies from citizens of the United States and other European Union nations.
The officials believe that the ban was imposed in order to control corruption within the Russian Federation. In addition to that, in case the residents of Russia decide to change their home currency to any other currency of equal weight or more, they will have to disclose this to the Central Bank of Russia, which is currently conducting a study about the exchange rates of different currencies. Any citizen who receives an award or salary from the Russian authorities will also have to inform the Bank that he or she is receiving ufa. Furthermore, those who hold any offices or posts in the administrative districts of delay, pyskov, oblast, Kharkov, shtolkita, or stavrugiutsk may also receive the award in cash or in kind (approximate USD).
In autumn of 2021, Belaya began to adopt the US Dollar as its official currency. However, on January 3rd, 2021, Russia announced that it would stop the use of the US Dollar as well, citing the high costs of maintaining the dollar as a significant influence on its economy. Consequently, Belaya began using the Ruble as its currency. Although the use of UFA as legal tender is prohibited in the Russian Federation, many inhabitants of the republic of bashkortostan.