On Tuesday, Russia’s lower house, the State Duma, passed legislation approving the introduction of a central bank digital currency (CBDC) or digital ruble. The country’s upper chamber still needs ratify the law, but it represents an important step in its digital currency endeavors. The Bank of Russia was scheduled to start a live pilot with 13 financial institutions on April 1, but it was delayed due to the lack of the necessary legislation. The trials are now expected to start later this month.
Russia’s central bank began exploring the possibility of issuing a digital currency in 2019, when it first floated the idea of using a gold-backed cryptocurrency for international settlements. As time went by, the central bank shifted its focus to CBDC.
However, gold backed tokens will also be used for cross border settlement in the near term, as Russia has existing laws for privately issued Digital Financial Assets which were originally not allowed to be used for payment.
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