Russia has introduced a new bill mandating banks and merchants to use the country’s CBDC, a digital ruble.
Despite Russia’s initial BTC reserve bill, the country opted not to hold the asset as a reserve.
The pivotal role of CBDCs in the country could lead to the complete abandonment of the Bitcoin plan.
Russia is advancing its digital currency agenda by introducing a new bill. The bill proposes to make the digital ruble, Russia’s central bank digital currency (CBDC), compulsory for banks and merchants. The rising prominence of the digital ruble casts a shadow over the prospects of Russia’s Bitcoin reserve plan, which is already shrouded in uncertainty.
The Russian government introduced the bill envisioning the launch of digital rubles as a complementary form of Russia’s currency, designed to coexist with traditional cash and electronic payments. The proposal outlines a phased rollout of digital rubles, starting with systemically important banks on July 1, 2025, and gradually expanding to all banks by 2027. Spearheaded by Anatoly Aksakov, Chairman of the Duma Financial Markets Committee, the bill also intends to establish a universal QR code payment system.
The Central Bank of Russia has collaborated with major financial institutions like Sberbank, Tbank, and Tochka Bank for the digital ruble pilot program. The program, which kicked off in August 2023 with 12 banks, has now expanded to include 15 financial institutions.
Many believe the CBDC program could significantly affect the country’s Bitcoin reserve strategy. Aligning with the US government’s Bitcoin reserve plan, Russia initiated a Bitcoin scheme focusing on international trade. The proposal submitted by Anton Tkachev, a State Duma member, read, “The Central Bank of Russia is already preparing to launch an experiment on cross-border payments in cryptocurrency.”
Despite the initial enthusiasm, Russia seems to have shifted its focus away from Bitcoin. Minister Anton Siluanov recently revealed the country’s cautious approach to Bitcoin, citing its high volatility. Reportedly, Russia has opted not to hold Bitcoin as a reserve asset but is leaving the door open to future adoption. Though Russia has temporarily rejected Bitcoin as a reserve asset, the country is now utilizing the cryptocurrency for cross-border payments as a way to bypass international sanctions.
In conclusion, the digital ruble’s increasing momentum in Russia overshadows the country’s strategic Bitcoin reserve program. It is uncertain if Russia will ultimately abandon its Bitcoin ambitions amidst expanding financial policies.
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