By John Meyer, Financial Affairs Consultant – Eurasia Business News, July 26, 2023

Photo : View on Moscow at night, 2021.

It will be possible to carry out transactions with the digital ruble using a special system, the operator of which will be the Central Bank. Crypto-rubles will be stored in digital wallets.

Russian President Vladimir Putin signed the law on the introduction of the digital ruble on July 25.

The promulgated law approved amendments to the Civil Code, which classify digital rubles as non-cash funds and fix the possibility of payments in Russia. The operator of the ruble digital platform will be the Central Bank of Russia.

The Bank of Russia will determine the rates for transactions with the digital ruble and the conditions under which banks will offer customers the opportunity to carry out such transactions. It is assumed that transfers and payments in digital rubles will be free for citizens and will cost 0.3% of the payment for companies.

Digital rubles can be bequeathed and heirs can use them for the testator’s funeral expenses. The main provisions of the law will come into force on August 1.

The digital ruble becomes the third form of national currency in Russia in addition to cash and scriptural money. It will be stored in digital wallets, access to them is possible through the mobile applications of Russian banks. Unlike cryptocurrency, the digital ruble is issued exclusively by the Bank of Russia.

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However, some banking operations and services will not be available with the digital ruble. It does not accumulate interest on the balance, cashback, and it is also impossible to issue loans or deposits in digital rubles, as the new legislation stands.

The Central Bank of Russia began developing a digital ruble in autumn 2020. The draft law, which amends certain legislative acts related to its implementation, was submitted to the State Duma at the end of 2022, and on 11 July 2023, the lower house passed it in final reading.

Central Bank Governor Elvira Nabiullina promised that no one would be “forcibly pushed” into the digital ruble. This would be a “voluntary and additional opportunity for citizens”. The governor admitted that the mass introduction of the third form of national currency in Russia will begin in 2025.

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