President Putin Signs Digital Ruble Law As A Central Bank Digital Currency In Russia

President Vladimir Putin signed the digital ruble law (photo: twitter @mfa_russia).

JAKARTA - Russia continues to advance with its plan to implement a central bank digital currency (CBDC) after President Vladimir Putin signed the digital ruble law to be legal on July 24. This was revealed from the official documents of the Russian government.

With this approval, the digital ruble law is scheduled to take effect from August 1, 2023, with one regulation being an exception that will be enforced from August 2024.

The third article, which includes amendments to several Russian federal laws, including those related to bankruptcy and legacy, is expected to take effect from August 2024.

The new law officially gives Russia's central bank power to launch its first CBDC trial with real consumers in August. Previously, the government planned to test the CBDC in April in collaboration with 13 local banks, including large banks such as Sberbank.

According to the newly passed law, Russia's central bank will become the main operator of digital ruble infrastructure and will be responsible for all assets stored. Digital rubles are designed to be used as payment methods and money transfers, and are not intended for investment purposes.

Digital rubles are expected to serve as the third form of money along with cash and non-cash rubles. Russian citizens will not be forced to use CBDC, and the use of digital rubles will be a voluntary choice given to individuals to decide, as said by the Governor of the Bank of Russia, Elvira Nabiullina, on July 24.

"No one will be forced to use digital rubles [...] But we really hope that this will be easier and cheaper for both society and businesses, and they will start using it. This is a new opportunity," Nabiullina was quoted as saying by Cointelegraph.

According to the Deputy Governor of the Bank of Russia, Olga Skorobogatova, the government does not expect the mass adoption of digital rubles in Russia before 2025 or even 2027.

This news comes shortly after the Russian State Council - which is the country's lower house of parliament - approved the digital ruble law in its third and final announcement on July 11. The Federation Council later approved the law on July 19. According to official records, the digital ruble law was originally registered in December 2022.

Despite rapidly developing CBDC legislation, Russian policymakers have continued to delay the introduction of cryptocurrency-related regulations, after several previous delays.

In May, State Council official Anatoly Aksakov pledged to approve four laws related to international crypto mining, taxes and crypto settlements. However, the law does not appear to have made much progress since then.