- Russian President Vladimir Putin has signed into law the bill for the digital ruble, Russia’s Central Bank Digital Currency (CBDC).
- The law will be effective from August 1, with the Central Bank of Russia responsible for the production and operation of the digital ruble.
- Usage of the digital ruble will not be mandatory, with mass adoption expected between 2025 and 2027.
Especially after the onset of the Ukraine war, significant steps have been taken regarding digital currencies in Russia, and today, President Vladimir Putin signed the CBDC law, which will take effect from August 1st. According to the statement from the central bank, the Russian public will have the initiative to decide whether to use CBDC or not, and the digital ruble will not be mandatory for the public.
Russia’s Digital Ruble: A New Era in Cryptocurrency
Following in the footsteps of China, Russia is now set to bring the concept of a Central Bank Digital Currency (CBDC) to life. The digital ruble, Russia’s own CBDC, has been officially sanctioned by President Vladimir Putin. The law governing the digital ruble will come into effect from the 1st of August, marking a significant milestone in Russia’s journey towards digital currency.
The Central Bank’s Role
The Central Bank of Russia will shoulder the responsibility of producing the digital ruble and overseeing its operation. This move signifies the country’s commitment to embracing digital currencies and the potential they hold for revolutionizing financial systems. The Central Bank will commence trials with real individuals within August, marking the start of a new chapter in Russia’s financial landscape.
Voluntary Adoption
One of the key aspects of the digital ruble law is that its use will not be made compulsory. Elvira Nabiullina, the head of the Central Bank of Russia, emphasized this point, stating that no one will be forced to use the digital ruble. However, she expressed hope that individuals and businesses would find it beneficial, particularly in terms of reducing payment transaction fees.
Expectations for Mass Adoption
Despite the excitement surrounding the digital ruble, the Central Bank does not expect mass adoption to occur immediately. Olga Skorobogatov, the deputy head of the Central Bank, stated that they anticipate mass adoption to take place no earlier than 2025 and no later than 2027. This timeline gives individuals and businesses ample time to understand and adapt to the new digital currency.
The journey towards the digital ruble has been a long one, with the bill first being drafted in December 2022. It was approved by the Duma, the lower house, on July 11, and by the Federation Council, the upper house, on July 19, before finally being signed into law by President Putin.
