Aksakov outlines the programmability of payments in the digital ruble

When dealing with the digital ruble, there will be the ability to set specific targets for the use of the asset. This was stated by Anatoly Aksakov, head of the State Duma Committee on the Financial Market, in an interview with «Парламентской газете».

According to him, such an approach can be used in everyday life, for example to earmark money for a child\’s breakfast at school, in funding budget institutions or in commercial operations.

“Budget funds will be used purposefully for the implementation of exactly the programs for which they were intended. … The same could happen in dealings between commercial organisations, when one company transfers money to another for the supply of goods or the performance of certain works. The money will be usable only for these purposes,” explained Aksakov.

The safety of the digital ruble will be guaranteed by the regulator—the Bank of Russia. The agency will also cooperate with Rosfinmonitoring and the Federal Security Service to track “nefarious operations,” the parliamentarian clarified.

On 11 July the State Duma approved a law introducing CBDC. The document immediately passed the second and third readings. The main provisions will come into force on 1 August 2023.

The deputy noted that in the initial stages of testing, limits on operations with the national digital currency will likely be introduced. The first transactions could occur as early as August, he added.

According to Aksakov, the central bank was ready for cross-border operations with the digital ruble as early as last year, but the corresponding laws had not yet been enacted.

“In the document we set out the possibility of using the digital ruble for exchange for officially recognised digital currencies of other countries. For example, the digital yuan, which appeared during the Beijing Olympics,” the official clarified.

In Aksakov’s view, the technology will help fight fraudsters, who last year caused Russians to lose more than ₽14 billion.

Earlier, the State Duma adopted a document on conducting deals with the digital ruble. In particular, it regulates the procedure for entering into and terminating a contract for the use of CBDC, and also introduces rules for the inheritance of electronic money.

In July, the deputy chairman of the Bank of Russia Olga Skorobogatova named approximate launch timelines for the technology. Citizens will be able to use the national digital currency in 2025–2027.