Putin says ‘yes’ to Russia’s digital ruble

The CBDC pilot will be implemented on Aug. 1, 2023

article-image

Russian President Vladimir Putin | Sasa Dzambic Photography/Shutterstock modified by Blockworks

share

Russian President Vladimir Putin has signed a bill that will introduce a digital version of the ruble, after the effort was initially sanctioned by the Duma on July 11, 2023.

Putin quite literally gave the law his stamp of approval on Monday, which now makes Russia the largest nation in the world to implement a central bank digital currency (CBDC).

The CBDC pilot will go into effect on Aug. 1, 2023, which comes a little under three years after the Russian government first published a consultation paper on the digital ruble in October 2020. 

Elvira Nabiullina, the governor of Bank of Russia, said in a statement that citizens would not be forced to use the CBDC and that it will serve as an additional currency.

The Bank of Russia will operate and maintain the necessary infrastructure to get a CBDC up and running, according to the text of the law.

Russia is joining 21 other nations that have launched pilot programs for CBDCs, according to the Atlantic Council CBDC tracker. Once the digital ruble officially launches past the beta, Russia will join a collection of 11 other nations that have actually instituted a CBDC — including Nigeria and a smattering of countries in the Caribbean. 

Russia’s move toward digital currencies comes at a moment when global government interest in CBDCs is at an all-time high. A 2022 Bank of International Settlements survey found that 93% of central banks have shown interest in exploring a CBDC.

Meanwhile in the US, England and Singapore, jobs having to do with CBDCs are exploding. Branches of the Federal Reserve in San Francisco, Boston, and Cleveland are all hiring CBDC architects, Blockworks reported Monday.

While the US hasn’t announced an official CBDC pilot, the Fed joined up with numerous central banks to pen a paper on the topic in May.

It remains to be seen how Russia’s CBDC will fare, but Nigeria — the next biggest nation to have launched one for its citizens — has run into major issues with its implementation.

Molly Jane Zuckerman contributed reporting.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Unlocked by Template.png

Research

With the spot ETH ETF approval, the institutions are coming. stETH - given its dominance in marketshare, existing liquid market structures, and highly desirable properties - is poised for institutions.

article-image

Plus, the rise of RWAs could bring about a significant shift in how real-world investments are managed and accessed

article-image

The distributed cell plan provider started selling its own hotspots in October 2023

article-image

The Brazil-based asset manager’s filing comes during a year of milestone bitcoin and ether fund approvals

article-image

The purchase of five sites in Georgia set to help CleanSpark hit its mid-year operating hash rate target of 20 EH/s

article-image

Plus, it’s beginning to look like we may be in for a cruel summer

article-image

Sponsored

Engaging with XDC provides access to cutting-edge financial tools and places investors at the forefront of the trade finance revolution