Switching to Digital Rubles
Russian tax authorities are set to start collecting taxes in digital rubles from 2025, as per recent tax code amendments signed into law by President Vladimir Putin. The Ministry of Finance aims to utilize digital rubles for not only tax collection but also for the payment of pensions and social benefits. This move aligns with their plans to make welfare and subsidy payments in digital rubles this year.
The ministry is considering paying over $155 million worth of bills in digital rubles. Although the details of these plans have not been revealed, they may include the use of “marked” or color-coded CBDC tokens. The government organs involved in the pilot programs have committed to being more proactive with the digital ruble in 2024.
Banks Empowered to Block Suspicious CBDC Transactions
Banks in Russia will be granted the authority to block CBDC transactions deemed “suspicious-looking” by the anti-money laundering regulator Rosfinmonitoring. Working in collaboration with the Central Bank, Rosfinmonitoring is developing legislation that will enforce this power.
If banks suspect that CBDC transactions are being carried out for criminal purposes, they will have the ability to intervene and stop them. This measure aims to enhance the country’s efforts to combat money laundering. The Deputy Director of Rosfinmonitoring, German Neglyad, emphasized the importance of these actions to prevent misuse of digital rubles.
“Last year, the regulator stated that it was monitoring some 25,000 Russian crypto holders in connection with money laundering suspicions. Rofinmonitoring chiefs say have developed a tool that lets them track and de-anonymize crypto transactions on popular blockchain protocols.” – German Neglyad
Overall, the Russian government is embracing the digital ruble and exploring its potential applications in various sectors. With the introduction of digital ruble tax payments and the empowerment of banks to block suspicious CBDC transactions, Russia aims to ensure the efficient and secure use of digital currency.
