Russia’s government is taking steps towards embracing digital currency with the intention of using the digital ruble for welfare payments and tax collection. Both the Central Bank and the Ministry of Finance are exploring the possibilities of utilizing the digital ruble for government payments. Additionally, they are seeking ways to enable individuals and corporations to pay their taxes using CBDC tokens.
China’s Influence on Russia’s Digital Ruble Rollout
The rollout plans for Russia’s digital ruble seem to have been significantly influenced by China’s digital yuan pilot. In certain areas of the Chinese pilot zone, citizens can already pay their taxes using the digital yuan. This has motivated Russian government and Central Bank officials to consider similar implementation.
China has also adopted the practice of paying civil servants and government employees in e-CNY tokens. The Russian authorities are looking at this model and considering adopting it as well.
No Restrictions on Digital Ruble Usage
Alla Bakina, the head of the National Payment System department at the Central Bank, assured the public that once the digital ruble is introduced, there will be no restrictions on its usage. Citizens will be free to spend their CBDC tokens as they please.
Bakina also emphasized that the digital ruble is not intended to phase out cash in Russia. She acknowledged that there is a category of people who are accustomed to using cash, and some merchants exclusively accept cash as a form of payment. The digital ruble will coexist with traditional currency.
However, the Central Bank still faces the challenge of building trust and understanding among the Russian population. Multiple surveys have shown that many citizens are skeptical or unsure about the digital ruble’s benefits. Commercial banks have also expressed reservations. Despite this, the Central Bank received a boost when Sberbank, the largest bank in Russia, announced its participation in the next stage of the digital ruble pilot.
