Russia to change laws for digital ruble, while central bank mulls 2022 prototype


The country will have a prototype of its digital ruble platform ready in early 2022, and it will be rolled out for trial use next year before a final decision is made on its issuance, Elvira Nabiullina, Chairman of the Board of Directors of the Russian Central Bank, said on Tuesday. … owns a digital currency, according to a Reuters report.

In the meantime, it is reported that Russian lawmakers will begin work on legal amendments necessary to implement the digital ruble plan to adapt the digital currency. According to Izvestia, the Chairman of the State Duma Committee on Financial Markets, Anatoly Aksakov, said that these legal changes will begin as soon as a claim for digital currency is submitted from the Central Bank (CBDC).

For the digital ruble to enter into force, at least eight federal laws and at least five laws must be amended, including the Civil Code, the Tax Code, the Budget Code, the Criminal Code and the Administrative Code. The report says that the new rules will address a number of issues, such as the powers of the Central Bank of Russia (CBR) to create circulation of a new currency, accept it as a means of payment, etc.

According to the report, the trial will take place in several stages. In the first stage, the central bank will introduce digital currency. The size of the pilot project network will be increased starting from 12 banks.

As per previous reports, CBR has set up a group of financial firms to investigate CBDC activities. However, according to recent reports, the coverage of the banking system will continue to expand.

Participating banks include major Russian banks such as Sberbank and state-backed VTB, as well as influential private banks such as Tinkoff Bank. Among the banks that joined the digital ruble pilot program are Bank of Moscow, Transneftank, Gazprombank, Promsviizbank, Rosbank, Ak Bars Bank, Dom.RF, SKB-Bank, TKB and Bank Soyuz.

The Bank of Russia announced its digital currency strategy for central banks at the end of 2020. In January, the Federation of Russian Banks criticized the project, saying that any of the models proposed by the Bank of Russia could have multiple risks related to cybersecurity and fraud.

In response to the increasing use of Bitcoin (BTC) and the decline in the use of cash, many central banks around the world have explored the possibility of issuing digital coins for digital currencies. These include European central banks and the People’s Bank of China.



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