According to local media reports, Elvira Nabiullina, Governor of the Central Bank of Russia, said in a speech to the Federation Council: "In five to seven years, the digital ruble will become commonplace in the lives of Russians." In summary, Putin previously called on the Russian Central Bank to implement a digital ruble , and the Russian Parliament passed a decree on cryptocurrency payments. It is obvious that the country’s government is already making progress towards CBDC.
(Russia fights sanctions! The central bank will allow companies to use cryptocurrency for global payments by the end of 2024)
(Putin warns of power shortages caused by cryptocurrency mining, urges implementation of CBDC digital ruble)
Putin approves digital ruble bill, which will become routine within seven years
Elvira Nabiullina said: “By 2031, the digital ruble will become everyday life.”
The digital ruble, currently in an experimental phase, is designed to operate in parallel with cash, offering a new method of payments and remittances but without incurring interest on balances. She also emphasized that the regulatory agency has no intention of enforcing the digital ruble, and that citizens’ use of the digital ruble will be entirely voluntary. Last August, President Putin approved the Digital Ruble Bill. The country's central bank is expected to work with 15 of the country's major banks on a pilot program for the currency.
Why does Russia need a CBDC?
"We believe that there are clear advantages for people to use the digital ruble. These transfers are absolutely free for citizens and have much lower commissions than corporate cards. We believe that due to these advantages, the digital ruble will gradually become available within five years "In seven years, it will become a familiar part of our lives," said Elvira Nabiullina. President Putin also mentioned previously: “For us, in Russia, it is important not to miss the opportunity to establish legal frameworks and regulations in a timely manner, develop infrastructure, and create opportunities for the circulation of digital assets domestically and with foreign partners. condition."
Sergey Glazyev, Russia’s former Minister of Foreign Economy, made the country’s need for CBDC more clear, saying: “This is a top priority for us; we can no longer trade with Western currencies. But our partners need time. Only then can we fully realize the benefits and importance of transitioning to a national currency. "The author believes that compared with the low transfer fees of cryptocurrencies, Russia's demand for CBDC and even cryptocurrencies is mainly due to the country's economic sanctions by Western countries. Relying on cryptocurrencies to achieve de-dollarization.
Russia legalizes mining, seeks to escape international sanctions
In addition to its push for a digital ruble, Russia has taken significant steps to integrate cryptocurrencies into its economy. The Russian Congress recently passed a bill legalizing Bitcoin mining and allowing the use of cryptocurrencies for international trade. The legislation aims to address the challenges faced by Russian banks due to regulatory restrictions and international sanctions that have disrupted trade relations with key partners such as China, India, the United Arab Emirates and Turkey. The new law establishes a regulatory framework to oversee cryptocurrency mining activities, ensure compliance with tax regulations and prevent illegal operations. It requires mining activities to be regulated by the government and the Bank of Russia, with compliance ensured by federal authorities.
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