Russia is set to launch its central bank digital currency (CBDC) pilot after President Vladimir Putin signed a digital ruble bill.
Asian countries such as China and India have already launched the pilot of their CBDCs. Now, Russia is preparing its place in the list of countries experimenting with the pilot stage of CBDC.
Russia Expected to Implement Digital Ruble Law From August 1
According to Russia’s official publication of legal acts, President Putin has signed the digital ruble law. And the law is expected to come into effect from the first day of next month.
The Russian CBDC, like most other CBDCs, will serve as an instrument for payment alongside the physical and non-physical rubble. On Friday, Elvira Nabiullina, the chair of Russia’s central bank, the Bank of Russia, clarified that citizens won’t be forced to use the digital ruble. But, they might choose to use it voluntarily as a mode of payment.
A local Russian outlet explains that transactions of digital ruble would be free. But the central bank would charge businesses 0.3% of the total amount for accepting payments.
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Some community members have expressed their disappointment with the rapid CBDC adoption. A Twitter user wrote:
Every country is going through this, govt can’t risk you having privacy anymore, one day you could become a threat, the US is no different.
Russia’s Inclination Towards Crypto
Due to the ongoing conflict with Ukraine, Russia has faced geopolitical challenges such as various trade sanctions. Hence, the country has been considering resorting to crypto for international trade settlements.
In January, BeInCrypto reported that Russia was collaborating with Iran to launch a gold-backed stablecoin.
Moreover, Digital Finance Assets (DFA) are increasingly becoming a favorite mode of Russian businesses to raise capital. DFA tokenizes the shares in a company, serving as a security token.
It is worth noting that Russia’s Moscow Stock Exchange is planning to introduce DFAs by the end of 2023.
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