Putin outlines new digital currency policy

The pilot launch of the digital ruble has been a success, the Russian president has said

The newly launched digital ruble should be fully incorporated into the Russian economy now that the test phase of its adoption is drawing to a close, President Vladimir Putin announced on Wednesday.

Speaking at a government meeting on economic issues, Putin said the pilot launch of the electronic currency had proved a success, and that the project is ready for wider implementation.

“The pilot launch of the digital ruble platform has shown its efficiency and functionality. And now we need to take the next step, namely to move toward a wider, full-scale implementation of the digital ruble in the economy, in business activities and in the field of finance,” the president suggested. He added that he plans to discuss the steps intended to speed up this process with regulators.

The idea of introducing a national digital currency was unveiled by the Bank of Russia in late 2020, and the digital ruble officially became operational on August 1 last year. Unlike virtual currencies such as Bitcoin, the digital ruble is an electronic form of the Russian national currency issued by the Central Bank and backed by traditional money. Regulators say that the digital ruble is intended to ease making money transfers and payments both inside and outside Russia, as it will not depend on bank restrictions such as commissions and limits.

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“Essentially, this is just another form of our national currency. The special thing about it is that citizens and businesses can use the digital ruble regardless of which bank they have an account with,” Putin noted.

According to the president, 12 banks, 600 individuals and 22 trade and service enterprises from 11 cities across Russia have already taken part in the trial phase of the currency’s adoption. As of July 1, they conducted more than 27,000 transfers and over 7,000 payments for goods and services using the digital ruble.

According to the Bank of Russia, 21 more lenders are currently preparing to join the project, which could happen as soon as September this year. The regulator has also started testing settlements using the digital ruble with a number of Russia’s foreign partners, its first deputy chairman Olga Skorobogatova told TASS earlier this month.

Central bank governor Elvira Nabiullina suggested in April that the full adoption of the digital ruble for mass use might take 5-7 years.

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“This will be a natural process because the choice of the people and businesses is fundamental: it should be convenient for them,” she told RIA Novosti news agency.

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