Russian authorities are preparing to change various laws to facilitate the issuance and operation of digital rubles. Moscow officials believe that this version of the national currency should be regulated separately from other forms of digital currency, such as cryptocurrencies.
Russia is preparing to test the digital ruble, officials say CBDC needs its regulations
The Russian legislature plans to start working on legislative changes necessary to implement the digital ruble concept in January 2022. These efforts will begin at the same time as the central bank’s experiments on digital currencies (CBDC) begin, Anatoly Aksakov, chairman of the Parliamentary Financial Markets Committee, told Russian daily Izvestia.
Aksakov said at least eight federal laws and five laws (civil, financial, budget, criminal and administrative) would need to be amended to implement the digital ruble. The new regulations affect a series of areas: the power of the Bank of Russia to organize the circulation of new currencies, legalization as a means of payment, legal protection of holders, etc.
Russia passed a special law regulating ‘digital financial aid’ that came into effect earlier this year. However, Aksakov is convinced that members of the State Duma, a member of the House of Representatives, should distinguish between the terms cryptocurrency, stable currency, and digital ruble. He also believes that legal protection of relevant rights should be ensured and that cryptocurrency mining should be regulated. The representative said:
Existing cryptocurrencies, stablecoins, and national digital currencies should have their definitions, which should be reflected in the law.
The Central Bank of Russia (CBR) plans to start testing the crypto ruble platform in January. Based on the CBDC concept launched this spring, prototypes will be ready by the end of this year.
According to media reports, the process will take place in several stages. In the first stage, CBR issues a crypto currency. The number of participants in the pilot project will be expanded to the current 12 banks in the future. Representatives of the Monetary Authority added:
Based on the results of this pilot, a roadmap for the adoption of the crypto ruble and the necessary legal changes will be developed.
According to the publication, the Russian Ministry of Economic Development said that the introduction of the crypto ruble would require separate legal regulations. Alexey Minaev, Deputy Director of Digital Economic Development, said, “I have to say at least that you can pay in digital rubles, unlike traditional digital currencies.”
In an interview with Izvestia, Minaev described the adoption of national cryptocurrencies as a global trend. Government officials also emphasized that this form of money has practically nothing to do with decentralized cryptocurrencies.