Recently, the State Duma, the lower chamber of the Russian Federal Assembly, approved the digital ruble bill in its third reading which supports the formation of Russia’s Central Bank Digital Currency (CBDC). The legislation will now proceed to the Federation Council, the assembly’s upper chamber, and subsequently to the President’s Desk for potential approval.
The bill, which underwent its latest amendment in late June, outlines the legal definitions of crucial terms such as “platform,” “participants,” and “users.” Additionally, it provides general guidelines for the CBDC ecosystem.
Under the current framework, the Bank of Russia (BoR), Russia’s central bank, will assume the primary role as the operator of the digital ruble infrastructure. The BoR will also bear the responsibility to safeguard all the assets stored within the system.
The primary objective of the CBDC, as highlighted by the BoR, is to facilitate seamless payment and transfer methods. Consequently, individuals utilizing the digital ruble will not have the option to open saving accounts. The BoR emphasizes that individual customers will enjoy free payment and transfer services, while corporate clients will incur a fee of 0.3% of the payment amount
The bill made its debut in the State Duma in December 2022 and successfully cleared the initial reading in March 2023. In February, a subsidiary of Gazprombank, a prominent Russian government-owned gas company, cautioned against potential risks for the bank if there is a rapid transition to digital currency.
According to the Russian branch billion rubles($3.5 billion) within five years due to the implementation of the CBDC. However, the consultancy firm also projected an annual profit of $1.1 billion for retailers.
During a recent interview, Olga Skorobogatova, the deputy chairman of the central bank, revealed plans for the widespread adoption of the digital ruble by all Russian citizens by 2027. To pave the way for this, a pilot program will be conducted between 2023 and 2024 to test the functionality and effectiveness of the CBDC.
Also Read: BOE Governor Rejects Crypto as Money in Favor of CBDC
