Russia's digital ruble is almost a reality after the approval of the lower house parliament

• The draft law is now forwarded to the upper chamber of the Russian federal assembly.
• In the event of its farewell, the draft law is signed and put into force by the President.
• The Bank of Russia (Bor) will become the main operator of the digital ruble infrastructure.

The digital rubles, a central bank digital currency project (CBDC) of the Russian Central Bank, has come a step closer to its completion. The third reading of the draft law on the digital ruble was approved on July 11 by the State Duma, the lower house of the Federal Assembly of the Russian Federation.

The Federation Council, the upper chamber of the meeting, will now check the proposal before it is assumed to forward it to the president's desk.

legal framework for the digital ruble

Legislation determines the legal definitions of "platform", "participants" and "user" as well as the higher-level principles that regulate the CBDC ecosystem. The legislation was recently changed at the end of June.

From today's perspective, the Bank of Russia (Bor), the Russian central bank, will be responsible for the operation of the digital ruble infrastructure. It is also responsible for all assets that are kept in the warehouse.

According to the BOR, the main function of the CBDC is to act as a means of payment and transfer. As a result, users will not be able to save money. Payments and transfers would be free for private customers and would cost corporate customers 0.3 % of the payment amount, as the board emphasizes.

The deputy chairman of the central bank, Olga Skorobogatova, recently announced the mass introduction of the digital ruble for all Russian citizens by 2027 in an interview. However, the CBDC is tested in a pilot program between 2023 and 2024.