A group of Russian lawmakers, led by Financial Markets Committee Chairman Anatoly Aksakov, has proposed draft legislation to create a digital ruble that will be issued by the Bank of Russia. The bill outlines the changes needed to create conditions for the introduction of a central bank-backed currency (CBDC).
Proposed draft legislation
The main goal of the digital currency law is reportedly to create a payment system that will enable Russian individuals, businesses, and the government to conduct fast, easy, and economical monetary transactions. Lawmakers believe this will increase financial accessibility and effectiveness for everyone.
By adding definitions, the digital ruble bill seeks to amend numerous laws. The proposed amendments would give the Bank of Russia sole control over the CBDC platform. In addition, the legislation describes how to use the network and set up wallets.
The law was also amended to recognize virtual currencies as official currencies of the Russian Federation and to classify central bank digital currencies created by other countries as international currencies. Subsequently, it became easier to establish the legal status of the digital ruble in the Russian financial system.
Federal legislation “on personal data” has been amended to allow the Russian Central Bank to process personal data without requesting permission and without prior notification to Russian institutions responsible for protecting personal data rights, a move that marks a paradigm shift in the way Russia handles personal information.
Digital Ruble
The Russian Central Bank revealed its idea for a digital coin in October 2020. In December 2021, it completed building a prototype framework. The initial phase of the project began in January of the same year. In May, the central bank said it intended to start testing involving real transactions and users in April 2023.
In response to increased Western sanctions related to Russia’s invasion of Ukraine, Russia’s central bank said in June it was shortening the timeline for its e-money project and setting a full launch date for 2024, with more than a dozen Russian financial institutions now taking part in trials.