Russia is getting closer to full-scale adoption of its CBDC, the digital ruble. A bill that would legalize this CBDC was eventually signed into law by President Vladimir Putin. The country had started to accelerate research and development around CBDCs last year after the country invaded Ukraine and a conflict broke out between the two countries. At the time, several states had imposed sanctions on Russian funds and assets stored in other countries, prompting the country to look for a way around the financial restrictions.
Legally signed by President PutinThe Digital ruble note (above Cointelegraph names Bank of Russia as source operator for digital ruble CBDC. The law will come into effect on August 1, according to the government document.
CBDCs – or central bank digital currencies – work in a similar way cryptocurrencies, but they are regulated and issued by central banks. This not only simplifies online payment systems, but also reduces reliance on cash. The Central Bank of Russia had started testing the digital ruble CBDC with real customers and using smart contracts last year.
Once the digital ruble sees wider adoption, Russian citizens will be able to make payments as well as instant transfers through their digital wallets. usage of CBDC will not be mandatory, and the government expected The currency is set to become more popular by 2027.
The bill that would legalize Russia’s CBDC was first passed by the country’s parliaments — the State Duma and the Federation Council — earlier this month.
A number of Russian banks were hired to pilot the CBDC last year after gathering feedback on its use cases from other financial market participants there.
The country may seek to use its CBDC to facilitate international money flows, despite sanctions imposed on Russia by Europe and the US.
India, China, Japan, Hong Kong, ZimbabweAnd Australia There are other nations working to introduce their respective CBDCs into their existing financial systems.
