Putin plans new digital currency laws
Date
7/18/2024 8:21:47 AM
(MENAFN) In a significant move towards digital transformation, President Vladimir Putin announced that the newly introduced digital ruble should be fully integrated into the Russian economy. This announcement came during a government meeting focused on economic issues, where Putin declared the successful completion of the pilot phase of the digital ruble’s adoption.
Putin emphasized that the pilot launch of the digital ruble platform had demonstrated its efficiency and functionality, making it ready for broader implementation. “The pilot launch of the digital ruble platform has shown its efficiency and functionality. And now we need to take the next step, namely to move toward a wider, full-scale implementation of the digital ruble in the economy, in business activities and in the field of finance,” he stated. The president also mentioned plans to discuss measures to expedite this process with relevant regulators.
The concept of a national digital currency was initially proposed by the Bank of Russia in late 2020. The digital ruble officially began its operations on August 1 of the previous year. Unlike decentralized virtual currencies such as Bitcoin, the digital ruble is an electronic version of Russia’s national currency. It is issued by the Central Bank and is backed by traditional money, ensuring its stability.
Regulators have highlighted that the digital ruble is designed to simplify money transfers and payments both domestically and internationally. It offers an advantage over traditional banking systems as it is not subject to bank-imposed restrictions such as commissions and limits. This functionality aims to facilitate smoother financial transactions for both individuals and businesses.
The digital ruble represents another form of Russia’s national currency. President Putin pointed out a key feature of this digital currency: it can be used by citizens and businesses regardless of their banking affiliations. “Essentially, this is just another form of our national currency. The special thing about it is that citizens and businesses can use the digital ruble regardless of which bank they have an account with,” Putin noted.
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