April 19, 2024
Latest Cryptocurrency News

Putin Signs Digital Ruble Bill into Law, First CBDC Trial with Real Consumers to Take Place in August

Russia took another significant step forward in its efforts to launch its central bank digital currency (CBDC) after President Vladimir Putin signed the Digital Ruble bill into law on July 24, as confirmed by an official government document.

The implementation of the Digital Ruble law is set to commence on August 1, 2023, with nearly all regulations ready to be enforced. However, article number three, which involves amendments to various Russian federal laws, including those concerning bankruptcy and inheritance, is expected to take effect from August 2024.

The new legislation grants the Russian central bank the authority to initiate the first CBDC pilot with real consumers in August. Initially, the government had planned to conduct trials in April with the collaboration of 13 local banks, including major institutions like Sberbank.

Under the newly enacted law, the Digital Ruble’s infrastructure will be operated primarily by Russia’s central bank, which will also be responsible for safeguarding all stored assets. The digital ruble is intended to serve as a payment and money transfer method, not as an investment instrument.

In a statement made on July 24, Bank of Russia governor Elvira Nabiullina emphasized that Russian citizens will not be compelled to use the CBDC. Instead, it will be entirely voluntary for individuals to decide whether they want to utilize the Digital Ruble. The hope is that it will offer greater convenience and cost-effectiveness for both individuals and businesses, providing them with a new opportunity.

According to Bank of Russia deputy governor Olga Skorobogatova, the government does not anticipate widespread adoption of the Digital Ruble in Russia before 2025 or even as late as 2027.

This development comes shortly after Russia’s State Duma, the lower house of parliament approved the digital ruble bill in its third and final reading on July 11. Subsequently, the Federation Council also gave its approval on July 19. The Digital Ruble bill was initially registered in December 2022, marking the start of the legislative process.

While making progress with CBDC legislation, Russian lawmakers have faced delays in introducing cryptocurrency regulations. Despite State Duma official Anatoly Aksakov’s promise to pass four bills related to crypto mining, taxation, and international settlement crypto in May, it seems that these bills have not advanced significantly since then.

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