The Russian parliament has taken the first step towards regulating and issuing a central bank digital currency (CBDC), as lawmakers approved the first reading of draft laws. The legislation will establish a legal framework for the issuance and use of CBDCs in Russia, a move aimed at addressing the growing demand for digital currencies in the country. The move is expected to create a more transparent and regulated market for CBDCs, which could help to promote their adoption among the public and businesses alike.
The Russian State Duma recently passed draft laws that aim to regulate the issuance and use of central bank digital currencies (CBDCs). Additionally, a bill amending the Civil Code was passed, defining digital rubles as “non-cash money” and providing rules for wallet agreements and digital currency inheritance. These two bills will be reviewed and refined based on feedback from lawmakers before a second reading.
One key issue raised concerns personal data protection. The current version of the bill authorizes the Russian central bank to process users’ personal data without their consent, which has sparked disagreement among lawmakers who believe it undermines citizens’ right to data privacy and protection. The financial markets committee has been instructed to ensure appropriate data protection measures are put in place for the new digital ruble system.
The draft laws also establish the Russian central bank as the sole issuer of the digital ruble and will grant them additional powers for its supervision. The digital ruble will be deemed an official representation of the country’s currency and will recognize all foreign digital currencies issued by a central bank as official state currencies. Procedures to access the platform and participant rules are also defined.
As the digitalization of currency continues, these bills aim to bridge regulatory gaps and provide a framework for the issuance and supervision of CBDCs. The second reading is expected to take place in the coming months, and these laws will shape the future of digital currency in Russia.
Title 1: Russia Moves Forward with Plans for Digital Ruble
Title 2: Data Protection a Key Concern in Proposed Digital Ruble Legislation