On July 24, a significant milestone was achieved as President Vladimir Putin signed the digital ruble bill into law, marking Russia’s progress in developing its central bank digital currency (CBDC). This move signals the country’s commitment to embracing the digital future of finance.
Scheduled Implementation of Digital Ruble Law
The official government document confirms that the digital ruble law is set to take effect on August 1, 2023. Almost all rules are ready for immediate enforcement, with only article number three. This includes amendments to various Russian federal laws concerning bankruptcy and inheritance, scheduled for implementation from August 2024.
Under the new legislation, Russia’s central bank is granted the authority to launch the first CBDC pilot. This will involve real consumers and start from August. Earlier plans had anticipated trials in April, with the collaboration of 13 local banks, including major institutions like Sberbank. This development marks a significant step forward in the testing and integration of the digital ruble into the financial landscape.
The Role of the Russian Central Bank and Digital Ruble Infrastructure
The digital ruble infrastructure will be operated primarily by Russia’s central bank. This will also assume responsibility for safeguarding all stored assets. The primary purpose of the digital ruble is to facilitate payments and money transfers, not to serve as an investment tool. Notably, it is designed to complement cash and non-cash rubles, providing citizens with a third form of currency.
Bank of Russia governor Elvira Nabiullina confirmed that the use of the digital ruble would be a voluntary choice for individuals and businesses. No one will be compelled to adopt it. However, the hope is that it will offer increased convenience and cost savings, encouraging widespread adoption. This presents a new opportunity for the country’s financial landscape.
Bank of Russia deputy governor Olga Skorobogatova revealed that the government does not anticipate mass adoption of the digital ruble in Russia before 2025 or 2027. This further suggests a cautious approach to implementation, allowing for careful monitoring and adjustment as necessary.
Legislative Journey and Future Prospects
Furthermore, the bill’s journey through Russia’s legislative process was a notable one. It started in December 2022 and underwent multiple readings and approvals before finally becoming law.
Despite the swift progress in CBDC legislation, the introduction of cryptocurrency regulation has faced several delays. This is as a result of State Duma official Anatoly Aksakov’s promise of passing four bills related to crypto mining, taxation, and international settlement crypto has yet to be realized.
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