Putin approved a bill making the “digital ruble” legal tender
Russian President Vladimir Putin has signed a bill banning the use of digital financial assets as payment for goods and services.
Part of an existing federal law governing banks and banking activities is suspended by the bill, which was introduced to the lower house of parliament in June. As a result, people are now prohibited from using cryptocurrencies as a means of payment.
As part of the national payment system, the bill also established the idea of an “electronic platform” where digital financial assets are issued and transactions and transactions are likely to be submitted to the register of the Russian central bank.
This comes as Putin passed a bill making the “digital ruble” legal tender. The measure also describes how banks would function under the new framework and provides legal definitions for users.
The Central Bank of Russia has been appointed to act as the platform operator for the Central Bank Digital Currency (CBDC). However, it won’t be until 2025 at the earliest before the majority of people will have access to online wallets.
Unlike a cryptocurrency such as Bitcoin, the digital ruble is a centralized token with a value associated with the national fiat currency. The measure was passed amid harsh Western sanctions and rising inflation spurred by the war in Ukraine. The central bank has said that no loans or deposits can be made using the CBDC, and that only payments or transfers are allowed.
