The
President of Russia, Vladimir Putin, has signed into law a bill that streamlines
the creation of a Central Bank Digital Currency (CBDC), the digital ruble.
The law
will become effective as from August 1, 2023 and will allow the Bank of Russia
to issue the digital ruble, which will be used alongside cash and non-cash
rubles.
According to
the new amendments to Russia’s Civil Code, the digital ruble will be used for
payments alongside other methods.
The
central bank will manage the digital ruble accounts and the currency is
expected to function as the third form of currency in the country.
The Bank
of Russia will serve as the primary operator of the digital ruble
infrastructure and has emphasized that the use of the CBDC will not be mandated
for Russian citizens.
The CBDC will
become an instrument to bypass the financial restrictions imposed on the
country by the West.
The development
is a significant milestone in Russia’s journey toward digital currency,
following in the footsteps of its neighbor, China.
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