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Russia: CBDC bill signed into law by President Putin

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On 24 July, Russian president Vladimir Putin signed the digital ruble bill into law, allowing the country’s central bank to issue its own CBDC.

Russia: CBDC bill signed into law by President Putin

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  • Both houses of the Russian parliament passed the Russian CBDC bill over the last two weeks.
  • The central bank could begin testing the CBDC, beginning 1 August.

On 24 July, Russian president Vladimir Putin signed the digital ruble bill into law. The step authorizes the country’s central bank, the Bank of Russia, to issue its own central bank digital currency (CBDC).

Both houses of Russia’s parliament passed the bill over the last two weeks. The third and final hearing of the bill took place on 11 July. It has been awaiting President Putin’s approval since then.

Within Putin’s authorization, the central bank can begin testing the CBDC, beginning 1 August.

Notably, the bill defines users legally; it also details how banks will function and operate under the new financial framework.

Russia’s central bank has been working on its CBDC project since 2020. The regulator said it began the project pilot with a number of Russian banks in February 2022.

Soon after, the country launched a war against Ukraine that still continues today.

Russians will be able to make payments and transfers from their digital wallets available over the platform of the central bank or one of its partner banks. According to the central bank, CBDCs can only be used for payments or transfers, not loans or deposits.

Will Russians take to CBDC?

However, Russian officials do not expect widespread usage of the CBDC for a few years.

Olga Skorobogatova, the First Deputy Chairman of the Bank of Russia, told Forbes earlier this month that most Russians will not be able to receive access to online wallets until at least 2025.

Russia’s central bank governor, Elvira Naibullina, has assured Russians they would not be forced to adopt the digital ruble but hoped that more people would consider doing so.

There are news reports about Russia facing severe inflation due to Western financial sanctions against the country. Western countries imposed these sanctions in response to Russia’s war against Ukraine.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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