Introduction of the Digital Ruble
In a significant legislative move, the Russian Duma has endorsed a bill to implement the digital ruble, marking a pivotal step towards the nation’s future Central Bank Digital Currency (CBDC) initiative. This legislation paves the way for a phased introduction starting in September 2026, following a revised timeline set by Russia’s central bank.
Legislative Progress
The Digital Ruble Bill has successfully cleared its second and third readings in the Duma and is now headed to the Federation Council for further approval. Ultimately, it will be presented to President Vladimir Putin for ratification, although these final steps are anticipated to be formalities as the law is expected to take effect by September 1, 2026.
This new timeline follows the central bank’s decision to postpone its previous plans to launch the digital currency by the summer of 2025. The initiative has been championed by a group of legislators led by Anatoly Aksakov, who heads the State Duma Committee on Financial Markets and has been instrumental in shaping Russia’s crypto and CBDC regulations.
Business Requirements and Regulations
Under this newly passed legislation, businesses with an annual revenue of at least 120 million rubles (approximately $1.5 million) will be required to offer digital ruble services by the implementation date. Medium-sized enterprises, with revenues up to 30 million rubles (around $383,000), will be given a one-year grace period, while smaller entities and start-ups will face a deadline of September 1, 2028. Notably, these regulations will extend to foreign banks operating within Russia, including various institutions from China, Europe, and the United States.
Payment Systems and Accessibility
A crucial aspect of the bill is the requirement for payment systems to utilize digital ruble QR codes, enabling app-based transactions for goods and services. Larger retailers are expected to integrate these payment methods from the start, but some smaller businesses may opt out of the system entirely. The legislation also acknowledges potential disparities in internet access, particularly in rural locales, stipulating that vendors lacking reliable connectivity will not be mandated to accept digital ruble payments, nor will those earning under 5 million rubles ($63,900) annually.
Pilot Program and Industry Reactions
Since launching a pilot program in mid-2023, which included participation from 600 consumers and 22 companies across various sectors—ranging from major financial institutions to local beauty shops—the central bank has been testing potential applications for the digital ruble. The Moscow Metro has also joined the pilot, exploring CBDC payment integration.
Despite these advancements, skepticism remains within the financial sector regarding the potential impact of a digital ruble on the broader economy. Notably, Sberbank CEO German Gref expressed doubts about the currency’s ability to drive significant economic transformation, although he acknowledged a niche for its use in international trade if necessary.
Proponents’ Perspective
Proponents of the digital ruble view it as an opportunity to enhance transaction safety, speed, and transparency. The Ministry of Finance also aims to utilize the CBDC for government benefits and contracts, targeting reductions in fraud and corruption related to public funds.
