Putin calls for "full-scale implementation" of digital ruble

The Bank of Russia's CBDC has proven its "efficiency and functionality"

The Bank of Russia has been conducting a pilot with digital rubles since August 2023. The project will be expanded in September.

Praising the “efficiency and functionality” of the Bank of Russia’s CBDC, Russian President Vladimir Putin instructed his government on Wednesday to prepare for the widespread introduction of the digital ruble.

“Now we need to take the next step, namely: move to a broader, full-scale implementation of the digital ruble in the economy, in business activities and in the financial sector,” Putin said during a meeting on economic issues.

Since August 2023, the Bank of Russia has been conducting a pilot program for the digital ruble involving 12 banks, 600 individuals and 22 trade service enterprises. The program will be expanded in September to include an additional 20 credit institutions. Participants will be able to make payments via QR code during the second phase of testing.

The law on the digital ruble was adopted in July 2023, designating the Bank of Russia’s CBDC as the third form of national currency. The CBDC will be introduced into the economy beginning in 2025.

A sampling of Russian media reports about Putin’s desire to see the mass introduction of the digital ruble (URA, Business Gazeta, Interfax, Vedomosti)

Despite widespread opposition to the digital ruble from across Russia’s political spectrum, the Bank of Russia and its media cheerleaders claim that the traceable, programmable, centralized digital token will help bypass sanctions and fight corruption through greater financial transparency.

However, Moscow already has an alternative to SWIFT that can be used to circumvent sanctions, and the Bank of Russia already has the ability to monitor all money transfers in the country.

December 2021. source: rbc.ru

On Russian Telegram channels, reactions to Putin’s call for the “full-scale implementation” of the digital ruble were mostly negative.

source: https://t.me/kommersant/69118

source: https://t.me/regnum_na/60337

source: https://t.me/Galina_Tsareva_official/4539

source: https://t.me/itsdonetsk/177879

source: https://t.me/sevseal/7210

source: https://t.me/anna_kpo/15767

source: https://t.me/c/1754252633/111635

The good news is that the Russian government might be too incompetent to fulfill Putin’s dream of a CBDC paradise.

“Considering the fantastic ability of the Russian authorities to fail any projects, skepticism about [the widescale adoption of the digital ruble] does not dissipate,” Russian commentator Anatoly Nesmiyan observed.