Russian parliament passes digital ruble bill

Russia’s central bank digital currency (CBDC) project, the digital ruble, has taken a step closer to reality. On July 11, the lower chamber of the Federal Assembly of the Russian Federation, the State Duma, passed the digital ruble bill in the third reading. The legislation now moves to the assembly’s upper chamber, the Federation Council, and, if passed, to the president’s desk.

The bill, which was last amended at the end of June, sets the legal definitions of “platform, ” participants,” and “users,” as well as the general guidelines for the CBDC ecosystem.

In the current framework, Russia’s central bank, the Bank of Russia (BoR), will become the principal operator of the digital ruble infrastructure. It also bears the responsibility for all the stored assets.

The main aim of the CBDC, according to the BoR, is to serve as a payment and transfer method. Hence, its users won’t be able to open savings accounts. As the BoR emphasizes, payments and transfers would be free for individual customers and cost 0.3% of the payment amount for corporate clients.

DAPNet’s Take
Digital Central Currencies are a horrible idea because they are government-controlled currencies that will weaken the value of private alternatives Hopefully, the Use will not follow Fausi’s bad example.