The digital ruble, a central bank digital currency (CBDC) project of the Russian central bank, has reached a significant milestone on its path to fruition. On July 11, the State Duma, the lower house of the Russian Federal Assembly, approved the third reading of the digital ruble bill. The bill will now move to the Federation Council, the assembly’s upper chamber, for consideration. If approved by the Federation Council, the bill will be signed into law by the president.

Key Points of the Digital Ruble Framework

The legislation establishes the legal definitions of “platform,” “participants,” and “users,” as well as the overarching principles that will govern the CBDC ecosystem. The Bank of Russia (BoR), Russia’s central bank, will be responsible for operating the digital ruble infrastructure and overseeing the assets held in storage.

The primary function of the digital ruble, according to the BoR, will be as a means of payment and transfer. Unlike traditional currency, the digital ruble is not intended for saving money. Individual customers will be able to make free payments and transfers, while corporate clients will be charged 0.3% of the payment amount.

In an interview, Olga Skorobogatova, the deputy chairman of the central bank, announced plans for the mass rollout of the digital ruble for all Russian citizens by 2027. However, before the full launch, the CBDC will undergo a pilot program between 2023 and 2024 to test its functionality and effectiveness.

FAQ

What is the digital ruble?

The digital ruble is a central bank digital currency (CBDC) project being developed by the Bank of Russia. It aims to provide a digital form of the Russian ruble that can be used for payments and transfers.

Who will be in charge of the digital ruble infrastructure?

The Bank of Russia (BoR) will be responsible for operating the digital ruble infrastructure and overseeing the assets held in storage.

When will the digital ruble be available to Russian citizens?

The deputy chairman of the central bank, Olga Skorobogatova, has announced plans for a mass rollout of the digital ruble to all Russian citizens by 2027. However, a pilot program will be conducted between 2023 and 2024 to test the CBDC’s functionality and viability.

How much will it cost to use the digital ruble?

Individual customers will be able to make free payments and transfers using the digital ruble. Corporate clients, on the other hand, will be charged 0.3% of the payment amount.

What happens next?

The digital ruble bill has been approved by the lower house of the Russian Federal Assembly and will now be considered by the upper chamber, the Federation Council. If approved by the Federation Council, the bill will be signed into law by the president.

Summary

The digital ruble project in Russia is one step closer to becoming a reality after the bill was approved by the lower house of the Russian Federal Assembly. The legislation establishes the legal framework for the digital ruble, with the Bank of Russia being in charge of operating the CBDC infrastructure. Individual customers will be able to make free payments and transfers, while corporate clients will be charged a fee. The deputy chairman of the central bank has announced plans for a mass rollout of the digital ruble by 2027, following a pilot program to test its functionality. The bill will now move to the upper chamber for further consideration.