Russia has adopted a law on targeted payments in digital rubles
This approach will allow for more efficient spending of federal budget money
17.07.2023 - 09:00
What’s new? The Russian State Duma has adopted a law on the third form of the national currency, according to which the digital ruble can be programmed for certain spending. Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market, emphasized that “it will not be possible to use the asset for other purposes,” since the intended purpose of the money will be spelled out in a special smart contract. According to the deputy, this approach will allow spending more efficiently not only the money of the federal budget but also the family budget.
What else did Aksakov report? Digital ruble along with cash and non-cash money will appear when the law on the national currency will consider by the Federation Council and signed by the President. The asset will circulate in the information system created by the Bank of Russia. The deputy allowed the possibility that the first transactions with its use will begin in August, while “at the initial stage of the all-encompassing use of the asset will not occur due to the lack of such experience.”
He explained that the digital ruble will not replace paper or non-cash rubles, which are kept in bank accounts, but will supplement the monetary circulation with a new form. According to the deputy, “funds will be moved in the Central Bank’s information system, and the regulator is fully responsible for their safety and reliability of transfers.”
Deputy Aksakov announces the legalization and “serious control” of cryptocurrencies in the Russian Federation
According to the official, the owners of this type of asset are waiting for the opportunity to work in the legal field
Aksakov said that the Central Bank, jointly with Rosfinmonitoring and the Federal Security Service, will make sure that the information system is not used for “disreputable operations.” In addition, smart contracts will help to determine in advance what user funds will be used for.
Smart contracts will also allow the control of the targeted spending of funds allocated from the state budget for the implementation of programs implemented by individuals and legal entities. According to Aksakov, this will lead to increased efficiency in the use of budget funds.
He noted that the same can happen in the interaction of commercial organizations when one company transfers money to another for the supply of goods or performance of certain works. Thus, the funds will be able to be used only for previously specified purposes.
The digital ruble rotates in the Central Bank’s information system and should not serve to earn interest or economic turnover, in connection with which the State Duma decided to prohibit making deposits or taking a loan in the asset.
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As for the limits on the use of the digital ruble, the deputy stressed that the law does not provide for restrictions, but the Central Bank can set them at its discretion. According to Aksakov’s assumption, the regulator will introduce certain limits in the first stages.
The Central Bank will create a special unit to manage the information system that ensures its circulation in order to resolve disputes in settlements with digital rubles. In addition, the unit will be responsible for correcting deficiencies, should they arise.
Aksakov also commented on the law adopted by the State Duma, which obliges banks to check the transfers of Russians. He explained that the Central Bank has a database of attackers’ details, which are used for unauthorized transactions. When receiving a signal about a transfer from a user, the bank can check with the database of the Central Bank and suspend the operation for security purposes.
Earlier, the Central Bank announced its intention to allow individuals and legal entities from other countries to open digital ruble wallets. The regulator will launch a service on its own platform, through which non-residents will be able to use digital rubles.
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