Vladimir Putin signs Russia’s digital ruble bill into law

• The digital ruble bill was passed by lower and upper parliaments before the president signed it into law.
• Russia is following in the footsteps of its neighbor China, which is far ahead with its digital Yuan project.
• The use of the digital ruble will be a voluntary choice for Russian citizens.

According to official government documents, President Vladimir Putin signed the law establishing the digital ruble into law on July 24, advancing Russia’s central bank digital currency (CBDC) project.

Following the president’s signature, the digital ruble law is now officially going into effect on August 1, 2023, with all but one rule set up for enforcement.

Russia’s State Duma — the country’s lower house of parliament — passed the digital bill, which was originally registered in December 2022, in its third final reading on July 11. The bill was then passed by the Federation Council, or Senate, on July 19.

Russia’s first CBDC pilot schedule

The first real-consumer CBDC pilot will be officially launched in August by Russia’s central bank thanks to the new law. Previously, the government planned to launch a trial run with 13 local banks, including powerhouses such as Sberbank, in April.

Russia’s central bank will be in charge of overseeing all deposited assets and will serve as the main operator of the digital ruble infrastructure, as per the newly signed law.

The digital ruble is not meant for investment; rather it is intended to be used as a means of payment and remittance. The digital ruble is intended to serve as a third form of currency alongside the cash and non-cash ruble.

On July 24, Elvira Nabiullina, Governor of the Bank of Russia, reportedly said that the use of CBDCs would not be mandated for Russian citizens and it would be their choice to do so. He says:

“No one is going to force anyone to use the digital ruble… But we really hope that it will be more convenient and cheaper for people and businesses, and they will start using it. This is a new opportunity.”

According to the deputy governor of the Bank of Russia, Olga Skorobogatova, the government does not anticipate mass adoption of CBDCs before 2025 or even 2027.