Russia's central bank digital currency (CBDC) project, the digital ruble, has achieved a significant milestone as the lower chamber of the Federal Assembly of the Russian Federation, the State Duma, passed the digital ruble bill in its third reading. The legislation will now progress to the upper chamber, the Federation Council, and if approved, it will eventually reach the president's desk.
The digital ruble bill, which underwent its latest amendment at the end of June, establishes the legal definitions of crucial terms such as "platform," "participants," and "users." It also outlines the general guidelines for the CBDC ecosystem.
Under the current framework, the Bank of Russia (BoR), Russia's central bank, will assume the role of the principal operator of the digital ruble infrastructure and will be responsible for safeguarding all stored assets.
The primary objective of the digital ruble, as outlined by the BoR, is to serve as a payment and transfer method. Therefore, individuals using the CBDC will not have the option to open savings accounts. The BoR emphasizes that payments and transfers will be free for individual customers, while corporate clients will be charged 0.3% of the payment amount.
The digital ruble bill was initially introduced to the State Duma in December 2022 and underwent its first reading in March 2023. In February, a subsidiary of Gazprombank, a leading Russian government-owned gas company, raised concerns about potential risks for banks in the event of a rapid transition to digital currency. The Russian branch of McKinsey estimated that traditional banks could face losses of approximately 250 billion rubles ($3.5 billion) within five years due to CBDC implementation, while retailers could potentially see annual profits of $1.1 billion, according to the consultancy firm.
In a recent interview, Olga Skorobogatova, the deputy chairman of the central bank, announced plans for the mass rollout of the digital ruble to all Russian citizens by 2027. A pilot program will be conducted between 2023 and 2024 to test the CBDC's functionality.
Preserve this significant moment in history and demonstrate your support for independent journalism in the crypto space by collecting this article as an NFT (Non-Fungible Token).
(DAVID ATTLEE, Cointelegraph, 2023)