Amendments Legalizing Foreign CBDCs Enter Into Force in Russia
The Russian government has officially recognized foreign central bank digital currencies (CBDCs) such as China’s digital yuan. Here are the key points:
1. Amendments to Russia’s federal law “On currency regulation and currency control” have granted foreign CBDCs the same status as the digital ruble.
2. The revised legislation allows non-residents to freely transact with digital currencies issued by foreign central banks.
3. Russia’s digital ruble law, which establishes the legal framework for the Bank of Russia’s digital currency, also came into force.
4. Russian banks participating in the CBDC pilot program will begin testing transactions with real users this month.
5. Russia is exploring digital currencies as a way to circumvent financial restrictions due to sanctions over its invasion of Ukraine.
Hot Take: While Russia is making progress in recognizing foreign CBDCs and introducing its own digital ruble, there is still skepticism among Russian businesses. Many small and medium enterprises do not see any advantages of the CBDC for their operations. It remains to be seen how widely adopted the digital ruble will be in the private sector.
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