WLTReport has warned you for a while about the impending danger of central bank digital currencies (CBDCs).
The Federal Reserve launched its FedNow instant digital payment platform days ago.
The U.S. federal government wants to implement a CBDC in the United States.
There's no doubt about it.
But let's turn our attention to Russia.
Would they incorporate a CBDC?
According to reports, Vladimir Putin signed a law approving a digital ruble.
BREAKING: Putin signs law to introduce digital ruble
READ: https://t.co/5R4DxQSGhd pic.twitter.com/15X0G7UKDe
— Insider Paper (@TheInsiderPaper) July 24, 2023
JUST IN - Putin signed a law on introducing a central bank digital ruble and creating an appropriate electronic platform — TASS
— Disclose.tv (@disclosetv) July 24, 2023
The digital ruble reportedly won't be mandatory.
For how long will this digital currency be voluntary?
Cointelegraph reports:
Russia is moving forward with its central bank digital currency (CBDC) as President Vladimir Putin signed the digital ruble bill into law on July 24, according to an official government document.
With this approval, the digital ruble law is officially scheduled to take effect from Aug. 1, 2023, with all but one rule ready to be enforced.
Article number three — which includes amendments to several Russian federal laws, including those related to bankruptcy and inheritance — is expected to take effect from August 2024.
The new legislation officially empowers the Russian central bank to launch the first CBDC pilot with real consumers in August. Previously, the government expected to roll out trials in April in collaboration with 13 local banks, including heavyweights like Sberbank.
According to the newly signed law, Russia’s central bank will be the principal operator of the digital ruble infrastructure and will hold responsibility for all the stored assets. The digital ruble is designed to serve as a payment and money transfer method, and does not provide for investment purposes.
“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," Bank of Russia Governor Elvira Nabiullina reportedly said, according to Russian media.
“No one is going to force anyone into the digital ruble. This is an absolutely voluntary use, this is an additional opportunity for people: if they want, they use it, if they want, they don’t use it,” she reportedly added.
There's that word again.
Convenience.
That is the selling point right now.
How long until the digital ruble is mandatory?
How long until cash is gone?
According to the Central Bank of Russia, "massive use of the digital ruble in the Russian Federation is possible in 2025-2027."
From the Russian Ministry of Digital Development, Telecommunications and Mass Media:
Mass introduction of the digital ruble in Russia is possible on the horizon of 2025-2027. Olga Skorobogatova, First Deputy Chairman of the Bank of Russia, spoke about this in an interview with Forbes.
"I think that all citizens will be able to open wallets, receive digital rubles and use them on the horizon of 2025-2027," she said. Skorobogatova pointed out that this, in particular, will depend on the banks that we will connect to the platform. According to her, this process is also phased.
Skorobogatova said that as soon as the law on the digital ruble is adopted, the Central Bank and market participants will start piloting it on real operations with 13 banks that have passed all the technical stages of preparation. She recalled that a retail model is being implemented. Skorobogatova explained that a wallet in digital rubles can be opened through the mobile application of any of her banks and initiate transfers there, and the Bank of Russia, receiving these requests, will conduct operations on its platform.
CoinDesk noted "the new law describes a legal framework for a central bank digital token," making a CBDC possible in the Russian Federation.
Via CoinDesk:
The digital ruble, which the Bank of Russia has long been mulling over, will be used for payments along with other methods, according to the new amendments to Russia's Civil Code. The digital ruble accounts will be managed by the central bank, the law says. The bill passed its third, final hearing on July 11 and had been waiting for the president to be signed.
Digital ruble is a CBDC project the Bank of Russia has been working on since 2020, when the Bank of Russia published its first analytical report on the topic. Later, the regulator updated the report including the feedback from Russian banks and other financial market participants. The regulator announced it stared piloting the system with a number of Russian banks in February 2022, shortly before the country started a war in Ukraine.
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