Vladimir Putin signs bill on Russia’s digital ruble

• The digital ruble bill was approved by the lower and upper houses of parliament before the president signed it into law.
• Russia is following in the footsteps of its neighbor China, which is well ahead in its digital yuan project.
• The use of the digital ruble will be a voluntary choice for Russian citizens.

According to an official government document, President Vladimir Putin signed the bill establishing the digital ruble into law on July 24, promoting the Russian central bank’s digital currency (CBDC) project.

Following the president’s signature, the digital ruble law is now set to officially take effect on August 1, 2023, with all but one of the rules ready for enforcement.

Russia’s State Duma – the lower house of the country’s parliament – approved the digital bill, which was originally slated for December 2022, in a third final reading on July 11. The bill was then approved by the Federal Council, or Senate, on July 19.

Russia’s first CBDC pilot program

The first pilot CBDC with real consumers will be officially launched in August by the Russian central bank thanks to new legislation. Previously, the government had planned to start trials with 13 local banks, including powerhouses like Sberbank, in April.

Russia’s central bank will be responsible for overseeing all stored assets and act as the main operator of the digital ruble infrastructure, according to the newly signed law.

The digital ruble is not intended for investment. rather, it is intended to be used as a means of payment and money transfer. The digital ruble is intended to act as the third form of currency alongside cash and cashless rubles.

On July 24, Elvira Nabiullina, governor of the Bank of Russia, reportedly said that the use of CBDC will not be imposed on Russian citizens and that it will be their choice whether to do so. She he said:

“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. This is a new opportunity.”

According to the deputy governor of the Bank of Russia, Olga Skorobogatova, the government does not foresee the mass adoption of CBDC before 2025 or even 2027.