Bank of Russia Confirms Digital Ruble Will Be Widespread by 2031

Bank of Russia Governor Elvira Nabiullina has stated that Russia’s digital ruble is on track to become widely adopted within the next five to seven years.

Speaking recently at the Federation Council, Nabiullina highlighted the advantages of CBDCs, including free transfers for individuals and reduced fees for businesses, which she believes will drive the digital ruble’s integration into everyday life by 2031.

The digital ruble, which is currently in a pilot phase with 13 local banks testing its features, aims to complement existing payment methods and offer interest-free transactions. The pilot includes testing digital wallets and peer-to-peer transfers, with plans for a broader rollout in 2025.

The law authorizing the digital ruble, signed by President Vladimir Putin and effective from August 15, 2023, tasks the Bank of Russia with overseeing its infrastructure and operations.

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In addition to the digital ruble, Russia has recently passed legislation that legalizes Bitcoin mining and permits the use of cryptocurrencies for international trade. This new framework addresses regulatory challenges and sanctions affecting trade with countries like China and India. The law regulates mining activities and allows mined crypto to be sold without domestic currency restrictions, though domestic crypto payments remain banned.

Russia is also considering legalizing stablecoins for international transactions to ease cross-border payments. The Ministry of Finance is exploring options for traditional exchanges to trade digital assets under new regulations.

Alexander Stefanov