An official publication issued by the government of Russia revealed that President Vladimir Putin had green-lighted the bill on central bank digital currency (CBDC). The report illustrated that President Putin signed the bill into law on Monday, July 24.
The presidential assent gives the authority the power to continue developing the digital ruble. This implies that the regulators can proceed with CBDC pilot tests for the digital ruble from August 1.
President Putin Signs CBDC Bill
Initially, the policymakers had projected that the digital ruble pilot trials would launch in April. The projection failed to materialize after Gazprombank, one of its partners , advised the apex bank to delay the rollout of CBDC to avoid loss of substantial income.
At that time, the bank had signed a partnership agreement with 13 Russian banks, including Sberbank. Also, the bank planned to collaborate with payment platforms, including Mastercard, Visa, and Mir.
A scrutiny bill on CBDC highlighted the fundamental principles for introducing the digital ruble in Russia. With presidential consent, the regulatory agency will enforce the rule into law except for one ordinance captured in Article 3 of the bill. Under this section, the regulator will enforce the amended federal rules in August 2024.
The bill grants the central bank of Russia complete authority to oversee the development of digital ruble infrastructures. The bank will ensure the user assets are secure and will be accountable for all the stored digital assets.
Features of Russian Digital Ruble
Beyond this, the digital ruble provides users with a convenient method to make payments and transfer funds. The digital ruble will be classified as the third type of money close after cash and non-cash assets.
However, the central bank will prohibit using digital rubles in investment projects. Based on the new legislation, the digital ruble will not be used in acquiring loans to create bank accounts.
Additionally, the bill restricts the use of “digital ruble” in any promotion activities carried out by non-operators of the CBDC. The restrictive measure aims at enabling the authority to implement the digital ruble within the Russian territories.
An announcement from the central bank governor Elvira Nabiullina dated July 24, stressed that using digital rubles would be voluntary. The executive affirmed that the authority will not force anyone to use the digital ruble.
The 59-year-old policymaker confirmed the digital ruble would provide Russians and investors with a convenient and cost-friendly payment method. She projects that the endless benefits of the digital ruble will inspire the public to adopt the CBDC. The executive encouraged the Russians to take advantage of the opportunities provided by the CBDC.
Russian Set to Start CBDC Trials Next Month
Elsewhere the deputy governor of the Bank of Russia, Olga Skorobogatova, projected that Russia will experience slow mass adoption of the digital ruble before 2025 until late 2027.
Even though the launching of the CBDC has faced a series of delays, the bill has completed the legislative approval process. Before the Presidential assent, the bill was approved by the highest legislative body State Duma a few days ago. Reportedly members of the federation council approved the bill in early July.
A report from the chairman of the Federation Council, Nikolay Zhuravlev, revealed that adopting emerging technologies such as blockchain and crypto will position Russia in a significant place in international trade. The executive urged the regulators to leverage advanced technology to develop financial tools that can function independently.
Editorial credit: 279photo Studio / Shutterstock.com