Russia Expands Concept for Digital Ruble to Replace Cash
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- Russia‘s State Duma delegates approved the package of bills related to the digital ruble in the first reading.
- The law amends many other statutes to provide definitions and establish procedures regarding the launch of central bank digital currencies.
- The Central Bank of the RF will be responsible for accounting for the finances and their safety in the accounts of Russians.
In Russia, a third form of the national currency, the digital ruble, will be introduced in addition to cash and non-cash. On the first reading, the State Duma lawmakers approved a bundle of pertinent laws.
The legislators have passed a draft bill that would make it easier to establish the ruble’s digital counterpart. The Act updates many other statutes to provide definitions and procedures for the establishment of the central bank’s digital currency.
The notion of the digital ruble will now be included in the Russian Civil Code. It is a kind of Russian national currency that combines the characteristics of cash and non-cash rubles. Payments and settlements might be made using the digital ruble.
The latter will be augmented with legal terminology pertaining to the Bank of Russia’s central bank digital currency (CBDC).
At that point, the Russian Federation Central Bank will be in charge of accounting for money and ensuring its safekeeping in Russian accounts.
Moreover, the regulator will create such money, which will be progressively released into circulation. As a result, the digital ruble will be included as part of the overall money supply, as well as cash and non-cash money in circulation in credit institutions. It will evolve into a “third type of money.”
Together with the digital ruble law, the House amended the Civil Code to identify the CBDC as non-cash money and govern other issues such as inheritance.
Proposals for further draft adjustments will be accepted in mid-April. The Bank of Russia intends to begin testing the digital ruble with actual users and transactions on April 1, with a complete rollout planned for 2024.
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