United

Bank AI

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
  Neither the author, Ruholamin Haqshanas, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions. 
</div> 
<p class="has-drop-cap">Russian President Vladimir Putin&nbsp;<a href="http://publication.pravo.gov.ru/document/0001202307240009?index=1" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">has signed</a>&nbsp;the country’s digital ruble bill into law, giving authority to the Bank of Russia as the central bank digital currency (CBDC) platform operator. The bill will allow the country’s central bank to commence tests of the CBDC starting August 1.</p> 
<h3 id="how-would-russia-s-cbdc-work">How Would Russia’s CBDC Work?</h3> 
<p>The digital ruble infrastructure will be managed and maintained by the Bank of Russia. The central bank will control all stored assets and act as the primary operator of the infrastructure rather than commercial banks.</p> 
<p>The new law specifies that the digital ruble is intended for payments and money transfers only, not investments. It will serve as a new form of payment alongside cash and non-cash rubles.&nbsp;</p> 
<p>In a&nbsp;<a href="https://ria.ru/20230721/rubl-1885538360.html" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">statement</a>, Bank of Russia governor Elvira Nabiullina mentioned that Russian citizens don’t need to use the CBDC. Instead, individuals will be free to choose whether or not to adopt the digital ruble.&nbsp;</p> 
<blockquote class="wp-block-quote"> 
 <p>“No one is going to force anyone into the digital ruble […] But we really hope that it will be more convenient and cheaper for both people and businesses, and they will start using it. This is a new opportunity.”</p> 
</blockquote> 
<h3 id="western-sanctions-further-drive-russia-toward-a-cbdc">Western Sanctions Further Drive Russia Toward A CBDC</h3> 
<p>Russia has been&nbsp;<a href="https://tokenist.com/russia-becomes-more-crypto-friendly-as-its-cbdcs-launch-date-approaches/" rel="noopener noreferrer nofollow" class="deco-link">discussing the concept of a digital ruble</a>&nbsp;for several years. In 2020, the country released an analytical report based on feedback from banks and financial market participants. It then conducted pilot tests with multiple banks in February 2022.&nbsp;</p> 
<p>However, the concept of a digital ruble gained significant momentum following the imposition of sanctions by the United States and its allies. The outbreak of the war in Ukraine further highlighted the importance of implementing the digital ruble to&nbsp;<a href="https://tokenist.com/looking-back-at-cryptos-utility-during-the-russian-invasion-of-ukraine-in-2022/" rel="noopener noreferrer nofollow" class="deco-link">address the impact of Western sanctions</a>, leading to an urgent push to launch the central bank’s digital currency.&nbsp;</p> 
<p>Both houses of Russia’s parliament swiftly passed the legislation for the digital ruble bill. Russia’s State Duma — the country’s lower house of parliament — passed the digital ruble bill on&nbsp;<a href="https://sozd.duma.gov.ru/bill/270838-8#bh_note" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">July 11</a>. The Federation Council — the upper house — approved the bill on July 19.</p> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noopener noreferrer nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="can-russia-use-its-cbdc-to-dodge-sanctions">Can Russia Use its CBDC to Dodge Sanctions?</h3> 
<p>Russia could use a digital ruble to facilitate domestic and international payments, overcoming the current sanctions restricting access to the international banking system. However, the success of using the digital ruble for international transactions will&nbsp;<a href="https://tokenist.com/russia-and-iran-discuss-using-stablecoin-backed-by-gold-for-foreign-trade/" rel="noopener noreferrer nofollow" class="deco-link">depend on the willingness of other countries</a>&nbsp;to accept it without requiring conversion into dollars.&nbsp;</p> 
<p>“There is concern that Russia may use the digital ruble to steal digital currencies and make up for the money lost on sanctions with hacking techniques like ransomware,” Euronews&nbsp;<a href="https://www.euronews.com/next/2022/05/26/will-russia-s-digital-ruble-shield-its-economy-from-western-sanctions" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">reported last year</a>. It claimed that Western countries are apprehensive that the launch of the digital ruble could weaken the effectiveness of sanctions.</p> 
<p>Likewise, a March report from the Official Monetary and Financial Institutions Forum claimed that&nbsp;<a href="https://www.omfif.org/2022/03/cbdc-networks-could-defang-sanction-threats/" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">CBDC networks could “defang” sanctions</a>. The forum highlighted the&nbsp;<a href="https://tokenist.com/multi-cbdc-bridge-can-enable-cross-border-payments-in-seconds-report/" rel="noopener noreferrer nofollow" class="deco-link">development of cross-border CBDC networks</a>&nbsp;in Asia, such as the mCBDC Bridge involving Thailand, Hong Kong, China, and the United Arab Emirates, as well as Russia’s digital ruble.&nbsp;</p> 
<p>The OMFIF suggested that these digital currencies could provide alternatives to Western-controlled payment mechanisms and help countries bypass sanctions. It also mentioned the potential role of cryptocurrencies, stablecoins, and the digital yuan in forming a payments network that cannot be curtailed by revoking access to Swift or the Fed’s clearing system.&nbsp;</p> 
<p>The forum predicted that if the dollar payments network continues to be used as a foreign policy tool, countries may need to develop alternative payment systems free from Western political influence. “As serious challengers emerge to Swift’s platform and the Fed’s clearing networks, the threat of prohibiting access will lose its sting,” the OMFIF said.&nbsp;</p> 
<div class="cta-sub js__cta-sub"> 
 <div class="cta-sub__start" data-step="1"> 
  <div class="cta-sub__title"> <strong>Finance is changing.</strong> 
  </div> 
  <div class="cta-sub__subtitle">
    Learn how, with Five Minute Finance. 
  </div> 
  <div class="cta-sub__excerpt">
    A weekly newsletter that covers the big trends in FinTech and Decentralized Finance. 
  </div> <button type="button" class="btn">Try it out (for free)</button> 
 </div> 
 <div class="cta-sub__form" data-step="2" style="display: none;"> 
  <script type="text/javascript" src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&amp;webforms_id=hpcwd"></script> 
 </div> 
 <div class="cta-sub__result" data-step="3" style="display: none;"> 
  <div class="cta-sub__title">
    Awesome 
  </div> 
  <div class="cta-sub__caption">
    You’ve subscribed. 
  </div> 
  <div class="cta-sub__greeting">
    You’re well on your way to being in the know. 
  </div> 
 </div> 
</div> 
<p><strong><em>Would Russian allies like China and Iran use a digital ruble in international settlements? Let us know in the comments below.&nbsp;</em></strong></p> 
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/russia-to-allow-use-of-digital-ruble-from-august/">Russia to Allow Use of Digital Ruble from August</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Russia to Allow Use of Digital Ruble from August

Table of Contents

Tokenist

Other articles published on Jul 25, 2023

KAVA Crypto Price Prediction: KAVA On A Critical Level

Hot Update: Trillion-Dollar Giants’ Crypto Exchange Announces Exciting News!

A Guide to the Top 5 Crypto Trading Bots to Use in 2023

10 Best Cryptocurrency Casinos in 2023

A Statement From Binance CEO CZ: We Will Start Serving This Country!

DigiToads (TOADS) Presale Surges: A Rising Star in DeFi

Join our free newsletter for daily crypto updates!