In the midst of heavy Western sanctions and soaring inflation caused by the conflict in Ukraine, Russian President Vladimir Putin has signed a measure into law that would provide a “digital ruble” the status of legal cash.
According to the recent revisions to Russia’s Civil Code, the digital ruble, which the Bank of Russia has been considering for some time now, will be utilised for payments alongside other means. According to the legislation, the central bank is responsible for overseeing digital ruble accounts. On July 11, the law cleared its third and final hearing and was ready to be approved by the president.
Although Putin has given his approval, Russian authorities have said that it would be years before the digital currency is widely accepted. Deputy Chair of the Central Bank Olga Skorobogatova told Forbes that most individuals won’t have access to digital wallets until 2025.
The third and final reading of the digital ruble bill was held on July 11 in the Russian lower house, the State Duma. The Federation Council, the assembly’s upper house, subsequently passed the law and sent it on to Putin for signature. With the passage of this new legislation, the groundwork has been laid for the establishment of a digital ruble in Russia, the third legal tender option for the country’s monetary system. In addition to fiat and alternative currencies, the Bank of Russia (BoR) is planning to launch a digital ruble.
While the notion of a digital ruble has been discussed in Russia for some time, it has gained momentum since the United States and its allies imposed severe sanctions on the country in response to the invasion.
