The digital ruble, the central bank’s digital currency (CBDC), is now subject to new rules, according to the Bank of Russia.
To encourage international payments and financial inclusion, the central bank will let foreign institutions open digital ruble accounts as of January 1, 2025.
The national currency will coexist with cash and non-cash rubles in a digital version known as the “digital ruble.” It will have the same legal standing and value as other forms of currency and will be issued and governed by the Bank of Russia.
Selected banks and payment service providers will participate in a pilot project for the digital ruble that the central bank intends to start in 2024. The Bank of Russia anticipates adopting the digital ruble will improve financial inclusion, lower transaction costs, and expedite domestic payments.
The bank anticipates that the digital ruble will strengthen Russia’s position in the international financial system by facilitating quicker and less expensive cross-border transfers and luring foreign investors and tourists.
Subject to specific requirements, the central bank has permitted foreign banks to open digital ruble accounts starting in 2025. Foreign banks will be required to abide by Russian legal requirements and global norms for tax evasion, anti-money laundering, and counter-terrorism financing.
They must also give the Bank of Russia details about their clients and business dealings. The Bank of Russia anticipates that this will level the playing field for domestic and foreign institutions, promote competition, and encourage innovation in the financial industry.
Thanks to the bank’s proposal, foreign consumers can access the digital ruble services without opening accounts with Russian banks. The central bank is aware of some risks and difficulties with the digital ruble, such as cyberattacks, data security, and monetary policy ramifications.
As a result, it plans to conduct thorough testing and stakeholder engagements before implementing the digital ruble. The Bank of Russia is gathering comments from the general public and other interested parties on its updated digital ruble concept, which describes the key characteristics, advantages, and difficulties of the CBDC initiative.
