Vladimir Putin approves CBDC implementation, Russia to launch Digital Ruble in August

In a groundbreaking move, Russian President, Vladimir Putin, has given the green light to the introduction of a digital version of the ruble, making Russia the largest nation in the world to implement a central bank digital currency (CBDC).

The bill, initially sanctioned by the Duma on 11 July 2023, was officially signed by President Putin, paving the way for the launch of the digital ruble pilot programme on 1 August.

Bank of Russia takes the lead in CBDC infrastructure

The Bank of Russia will play a crucial role in the operation and maintenance of the necessary infrastructure for the digital ruble. Governor Elvira Nabiullina emphasised that citizens would not be obligated to use the CBDC and that it would serve as an additional currency alongside the traditional Ruble.

Joining a select group of 21 other nations, Russia is entering the CBDC race, with the digital ruble pilot program marking a significant milestone in the country's financial landscape. Once the pilot phase concludes successfully, Russia will join the ranks of 11 other nations, including Nigeria and several Caribbean countries, which have already implemented a fully functional CBDC.

Global interest in CBDCs surges as job opportunities expand in the sector

The move towards CBDCs reflects a worldwide trend, with a 2022 survey by the Bank of International Settlements revealing that 93 percent of central banks are keen to explore CBDCs. Notably, in the US, England, and Singapore, job opportunities related to CBDCs are booming. Several branches of the Federal Reserve, including those in San Francisco, Boston, and Cleveland, are currently hiring CBDC architects to develop their respective digital currencies.

While Russia is forging ahead with its CBDC, it has taken a different approach to cryptocurrencies. President Putin and the Russian parliament have banned the use of private cryptocurrencies for domestic payments, limiting their usage only for cross-border trade purposes.

However, lessons can be learned from Nigeria, the next biggest nation to launch a CBDC, which faced significant challenges during its implementation process. As Russia prepares to enter the digital ruble era, all eyes will be on the success and impact of the CBDC on the country's economy and financial landscape.

In conclusion, with President Putin's approval, Russia is set to embark on a new era of financial innovation by launching the digital ruble. As CBDC interest continues to surge globally, the world will be closely observing the pilot program's progress and its potential implications for the broader adoption of digital currencies in the future.