The largest country in the world by land area is set to introduce a digital ruble next week after Russian President Vladimir Putin greenlit the project on Thursday.
The text of the law amends the Russian Civil Code to allow the use of digital currency for payments, while granting the Russian central bank the authority to permit citizens to use the currency starting August 1.
Accounts for the digital ruble will be managed directly by the central bank, rather than commercial banks.
In a statement shared by the governor of the Russian central bank, Elvira Nabiullina clarified that the use of the currency is entirely optional.
– We truly hope that it will be more convenient and cheaper for both people and businesses, and that they will start using it. This is a new opportunity – she said.
The Russian government first began exploring CBDCs in October 2020, and started piloting the system with Russian banks in February 2022. Two weeks ago, the State Duma approved a new law that will allow individuals to use the currency.
The currency will be programmable to enforce certain transaction limits and restrictions on what citizens can spend their money on.
While Western countries like the U.S. and Canada are only exploring CBDCs, critical politicians in each country have sharply criticized the concept precisely for this feature.
In March, Florida Governor Ron DeSantis called CBDCs a tool for surveillance and control of American behavior.
On the other hand, Putin and the Russian parliament have already banned the use of private cryptocurrencies for payments within the country, allowing only their use for cross-border trade.
