CBDC Approved by Putin, Set to Launch on 1st August.

The pilot program for the digital ruble (CBDC) in Russia starts on August 1 and is entirely optional.

The introduction of a digital ruble is scheduled to begin the next week in the largest nation by landmass in the world, thanks to approval from Russian President Vladimir Putin on Thursday.

The bill’s text alters Russia’s Civil Code to permit the use of the digital ruble for payments and gives Russia’s central bank the authority to begin allowing actual citizens to use the currency on August 1.
Instead of commercial banks, the central bank will handle account management for the virtual ruble.

Elvira Nabiullina, the head of the central bank, made it clear that using the money is entirely optional in a statement that was distributed by Russian media.

“We really hope that it will be more convenient, and cheaper for both people and businesses, and they will start using it,” she said. “This is a new opportunity.”

In October 2020, the Russian government started looking at the possibility of a digital ruble, and in February 2022, it started testing the system with Russian banks. The new law allowing the use of the currency by private individuals was passed by the State Duma two weeks ago.

The currency will be programmable to impose certain transaction thresholds and limitations on what users of the currency can buy.

Critical politicians in each country have criticized the idea for just this trait, despite the fact that Western nations like the United States and Canada are only just beginning to explore CBDCs.

In March, Florida Governor Ron De Santis described CBDCs as a tool for “surveilling Americans, and controlling behavior of Americans.”

Putin and the Russian parliament, in contrast, have already outlawed the use of private cryptocurrencies for domestic payments and have only authorized their use for international trade.