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Russia's bill regarding the digital ruble is now signed into law and will take effect on August 1, 2023.
Russia’s CBDC Legislation Finally Signed into Law
Russia moves forward with the launch of its central bank digital currency (CBDC), digital ruble, thus taking a step towards crypto regulation in the country.
The digital ruble legislation bill was first introduced to the lower chamber of the Federal Assembly of the Russian Federation, the State Duma, in December 2022. The bill passed its first reading in March 2023 and its third final reading on July 11, 2023.
On July 24, Russia’s president Vladimir Putin finally signed the CBDC bill into law which is scheduled to come into force on August 1, 2023.
The new law introduces amendments to several articles of the Russian Federation Civil Code. According to the law, the digital ruble will be treated as a means of cashless payment. Russia’s central bank will be the main entity responsible for the digital ruble’s infrastructure and the safety of the stored assets.
How the Digital Ruble Is Expected to Work
The digital ruble is primarily designed to be a means of payment or a money transfer method and not aimed at investment purposes. Russia’s central bank reported that transfers and payments in digital rubles will be free for regular citizens, although corporate clients will have to pay 0.3% of the payment amount.
The authorities have referred to the digital ruble as a “new opportunity for citizens and businesses”. It’s also important to note that the use of the new currency in the country will be completely voluntary.
“No one is going to force anyone into the digital ruble. Its use is absolutely voluntary, it is an additional opportunity for people: they can use it if they want to.” – said the governor of Bank of Russia, Elvira Nabiullina.
The government authorities previously reported that trials of the CBDC were to be run in collaboration with 13 local banks that have passed the necessary technical stages of preparation. The digital ruble wallet and transfers should be available in any of the Russian banks’ mobile apps, although all the operations will be carried out by the Central Bank itself.
The Bank of Russia highlights the reliability, security, and efficiency of the CBDC operations thanks to their centralized regulation.
Olga Skorobogatova, the Bank of Russia’s deputy governor, compared the digital ruble to other digital assets:
"the digital ruble is not a cryptocurrency or a stablecoin, where either there is no issuer, or it is not clear who it is."
The mass adoption of the digital ruble in Russia is expected in 2025-2027. The CBDC could be a way to avoid sanctions against Russia imposed by the West when making cross-border payments. It could also be part of the effort to regulate the use of digital assets in the country.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.