Law on digital ruble adopted

The new law stipulates the main terms and definitions required to introduce the digital ruble, in particular the legal status of the digital ruble and transactions with this form of money, as well as the relationship between the Bank of Russia as the operator of the digital ruble platform, its participants (financial intermediaries) and users (people and companies).

Transactions on the digital ruble platform will be conducted in compliance with the rules to be approved by the Bank of Russia Board of Directors. Besides, the Board of Directors will set the fees for transactions with the third form of the national currency and the deadlines for banks to connect to the digital ruble platform. It is expected that money transfers and payments in digital rubles will be free for individuals, and the fees for businesses accepting payments in digital rubles will be 0.3% of the payment amount.

The law establishes the Bank of Russia’s obligations to users as the operator of the digital ruble platform, that is, the Bank of Russia is responsible for the opening of digital wallets, processing of transactions with digital rubles, and a number of other functions as the regulator.

It is essential that, pursuant to the new law, digital ruble transactions and accounts will be subject to the effective banking secrecy requirements.

The digital ruble is created primarily as another means of payments and money transfers. Therefore, according to the law, it is impossible to open a deposit or raise a loan in digital rubles, and no interest is to be accrued on balances in digital wallets. This will promote competition and innovations in the financial market.

Moreover, the law establishes the basis for enhancing the digital ruble platform, including with regard to cross-border communication.

The main provisions of the new law will become effective on 1 August 2023.