President Vladimir Putin has officially approved the digital ruble bill, positioning Russia to be one of the first major countries to adopt a retail central bank digital currency (CBDC). The law, due to come into effect from August 1, 2023, bestows the Russian central bank with the authority to launch the first consumer CBDC pilot. However, the enforcement of certain amendments related to inheritance and bankruptcy is set for August 2024.
Bank of Russia’s Governor, Elvira Nabiullina, clarified that the digital ruble’s use will not be compulsory but hopes for its adoption due to its convenience and cost-effectiveness. She stated, “No one is going to force anyone into the digital ruble… But we really hope that it will be more convenient and cheaper for both people and businesses, and they will start using it.”
Despite these advancements, Bank of Russia’s deputy governor, Olga Skorobogatova, anticipates mass adoption not before 2025 or 2027. The digital ruble will function primarily as a payment and money transfer method, with the central bank operating the infrastructure and assuming responsibility for all stored assets.
The digital ruble bill gained approval after being passed by the Russian State Duma and the Federation Council in July, having been first registered in December 2022. Concurrently, Russia’s progress in establishing cryptocurrency regulations remains stagnant, with a history of consistent delays. Four bills concerning crypto mining, taxation, and international settlement crypto, promised in May, have yet to materialize.
First published at Crypto.news.
Photo by President Executive Office of Russia, Attribution 4.0 International (CC BY 4.0).
Jack McPherrin ([email protected]) is a managing editor of StoppingSocialism.com, research editor for The Heartland Institute, and a research fellow for Heartland's Socialism Research Center. He holds an MA in International Affairs from Loyola University-Chicago, and a dual BA in Economics and History from Boston College.
