Putin Launches Digital Ruble: Russia’s Leap into the Crypto-Future Amidst Sanctions

13 Banks, 30 Businesses, and Countless Opportunities - Russia Embraces the Digital Ruble, Charting a New Financial Frontier

Vladimir Putin is bringing the “digital ruble” to Russians from today, August 1, for the payment of goods and services, following the law he signed a few days ago, on June 24, establishing the legal rules for the introduction of the digital ruble.

- Advertisement -

The digital ruble will be put into circulation initially by 13 banks. In the pilot phase, participants will try opening and closing digital wallets and transferring them between individuals, as well as paying for goods and services in digital rubles using a QR code.

Up to 30 businesses in trade and services in 11 cities, previously selected by banks and the Central Bank, will test the payment.

Starting in 2023, the Central Bank plans to gradually expand the use of the digital ruble. It should be noted that amid Western sanctions on Russia over the war in Ukraine, the euro equals 101 rubles and the dollar equals 91 rubles.

These operations will be carried out in accordance with the rules approved by the board of the financial services regulator.

- Advertisement -

It will also establish tariffs for conducting transactions with the third form of the national currency and the conditions under which banks should provide customers with the possibility to carry out such transactions.

In an exclusive interview previously given to CNBC, the head of Russia’s central bank, Elvira Nabiulina, stated that digital currencies are the future for financial systems. “We will go step by step because it is a complicated process, both from a technological and legal point of view.”

What is foreseen

The digital ruble will set tariffs for conducting transactions with the third form of the national currency and the conditions under which banks will have to provide customers with the possibility to carry out them.

It is envisaged that for individuals transfers and payments will be free of charge and for businesses the tariff for accepting payments will be 0.3 percent of the payment.

As noted in the document, “it will not be possible to open a deposit in digital rubles and receive a loan, and no interest will be charged on balances in digital wallets.”

In addition, the law defines the obligations of the Central Bank as a platform operator: it is responsible for opening digital wallets, conducting transactions and certain other functions. In order to organize the operation of the platform, the Bank of Russia will have the right to process personal data of users.

In addition, a ban is introduced on the use in advertising of the phrase “digital ruble platform” and words and phrases derived from it by persons who are not operators of this platform.

The document also clarifies the meaning of “foreign currency” – it will include the national currency unit of a foreign state (group of foreign states), issued in digital form.

🔴 LATEST POSTS

Previous Articles:

- Advertisement -

Latest News

Hong Kong CEO Touts City as Web3 Hub, Stablecoin Licenses Soon

Hong Kong's Chief Executive, John KC Lee, has declared the city's goal to become...

Ray Dalio Warns of Government Control via CBDCs

Ray Dalio warns CBDCs grant governments sweeping transaction monitoring and policy enforcement powers.He argues...

LSEG, Apex Group to tokenize private funds by 2026

First paragraph: A compelling hook combining who, what, when, where.LSEG and Apex Group launch...

Justin Sun’s Ex Says X Account Suspended Over Mass Reports

An X account belonging to Justin Sun's alleged former girlfriend, Zeng Ying, was suspended...

Dollar Could Fall 10% on Aggressive Fed Cuts

State Street strategists warn the US dollar could fall up to 10% if the...

Must Read

Top 8 Books Every Beginner Should Read About Cryptocurrency

Cryptocurrency and blockchain technology are filled with technical terms that beginners find challenging to understand. One of the best ways to learn about cryptocurrency...
🔥 #AD Get 20% OFF any new 12 month hosting plan from Hostinger. Click here!