• The Russian Federal Assembly recently approved the third reading of the digital ruble bill, bringing it one step closer to becoming a reality.
• If passed, the Bank of Russia (BoR) will become the principal operator of the digital ruble infrastructure.
• It is expected that all citizens will have access to the digital ruble by 2027.
Digital Ruble Approved by Lower House Parliament
The digital ruble project, a central bank digital currency (CBDC) initiative of Russia’s central bank, has moved one step closer to completion after its third reading was approved on July 11 by the State Duma, which is the lower house of Russia’s Federal Assembly. The Federation Council will now consider this proposal before signing it into law if approved.
Bank of Russia to Operate Digital Ruble Infrastructure
The legislation establishes legal definitions such as “platform”, “participants” and “users” as well as overarching principles governing CBDC ecosystem. Currently, Bank of Russia (BoR) is in charge of running this digital ruble infrastructure and all assets kept in storage. Its primary function is to act as a means for payments and transfers with no fees for individual customers and 0.3% charged per payment for corporate clients.
Mass Rollout Expected by 2027
Deputy Chairman of Central Bank Olga Skorobogatova announced mass rollout of this digital ruble for all Russian citizens by 2027 with pilot testing taking place between 2023-2024 period.
Impact on Crypto Markets
This move signifies a positive outlook from regulatory authorities towards crypto assets and could potentially lead to more countries exploring such initiatives in order to keep up with technological advancements in financial markets worldwide. This could eventually result in increased demand for some cryptos depending on their utility value which could lead to optimistic prices over long term investing periods.
The approval from Russian Federal Assembly brings the much anticipated digital rouble project closer to reality with its complete roll out expected within 4 years from now and BoR being responsible for its operation and maintenance during that time period. This development could have potential implications on cryptocurrency markets due to increased demand over long term investment periods depending on usage values offered by different cryptos available today