Vladimir Putin approves Russian CBDC, to be launched in August

The world’s largest country by landmass is set to launch a digital ruble next week after Russian President Vladimir Putin gave the green light to the project on Thursday.

• bill text Russia’s Civil Code has been amended to allow the digital ruble to be used for payments, while Russia’s central bank has been empowered to allow real citizens to use the currency from August 1.
• The accounts for the digital ruble will be managed directly by the central bank instead of commercial banks.
  one in statement Central bank governor Elvira Nabiullina, shared by Russian media, clarified that the use of the currency is entirely optional.

• “We really hope that it will be more convenient and cheaper for both people and businesses to start using it,” he said. “It’s a new opportunity.”

• The Russian government first began exploring the digital ruble in October 2020, and began testing the system with Russian banks in February 2022. Two weeks ago, the State Duma approved new legislation that would allow the use of the currency by individuals.
• The currency would be programmed to enforce certain transaction limits, and place restrictions on what citizens could spend their money on.
• While Western countries such as the United States and Canada are only just exploring CBDCs, the concept has been criticized by prominent politicians in each country.
• In March, Florida Governor Ron De Santis called the CBDC a tool to “surveill Americans and control Americans’ behavior.”
• In contrast, Putin and the Russian parliament have already banned the use of private cryptocurrencies for payments within the country, approving their use only for cross-border trade.

The world’s largest country by landmass is set to launch a digital ruble next week after Russian President Vladimir Putin gave the green light to the project on Thursday.

• bill text Russia’s Civil Code has been amended to allow the digital ruble to be used for payments, while Russia’s central bank has been empowered to allow real citizens to use the currency from August 1.
• The accounts for the digital ruble will be managed directly by the central bank instead of commercial banks.
  one in statement Central bank governor Elvira Nabiullina, shared by Russian media, clarified that the use of the currency is entirely optional.

• “We really hope that it will be more convenient and cheaper for both people and businesses to start using it,” he said. “It’s a new opportunity.”

• The Russian government first began exploring the digital ruble in October 2020, and began testing the system with Russian banks in February 2022. Two weeks ago, the State Duma approved new legislation that would allow the use of the currency by individuals.
• The currency would be programmed to enforce certain transaction limits, and place restrictions on what citizens could spend their money on.
• While Western countries such as the United States and Canada are only just exploring CBDCs, the concept has been criticized by prominent politicians in each country.
• In March, Florida Governor Ron De Santis called the CBDC a tool to “surveill Americans and control Americans’ behavior.”
• In contrast, Putin and the Russian parliament have already banned the use of private cryptocurrencies for payments within the country, approving their use only for cross-border trade.