Putin approves the creation of a platform for the digital ruble

Russian President Vladimir Putin has approved new legislation establishing the gradual implementation of the digital ruble in the country’s economy, in conjunction with traditional payment methods. This measure, which will be effective from August 1, also includes the creation of a suitable electronic platform to support the digital ruble.

The implementation process will begin with initial tests of basic operations of the digital ruble starting next year, gradually expanding its use to other transactions, such as contactless payments and interbank transfers, announced Elvira Nabiúlina, Governor of the Central Bank of Russia, on June 19.

The digital ruble will be issued exclusively by the Central Bank, and the platform used for its operation will be protected as an essential infrastructure of the Russian Federation, according to Denis Poliakov, deputy director of the Department of National Payment Systems.

All activity on the digital ruble platform will be subject to the rules established by the Board of Directors of the Bank of Russia, and this entity will also determine the fees applicable to transactions with this digital currency. The Central Bank has plans to encourage the use of the digital ruble, even in international transactions.

It is important to note that the digital ruble will not be a cryptocurrency, since it will be backed and regulated by the Central Bank, according to Nabiúlina, who has disagreed with the use of cryptocurrencies.

The main goal is for the digital ruble to work in parallel with cash rubles, allowing users to manage it through digital wallets and use it via mobile or other electronic devices.

With this new digital currency, Russians will be able to make payments for goods and services, make disbursements to organizations and the State, make fund transfers, as well as pay for transactions with financial instruments and digital assets.

In addition, the law provides for the possibility of transferring rights to digital rubles, including through testamentary dispositions, and heirs will have the option of receiving digital rubles from the deceased’s account to cover his funeral expenses.

K. Tovar

Source: Bancaynegocios

(Reference image source: Anton Maksimov 5642.su, Unsplash)

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