The Russian Ministry of Industry has asked for a two-year transition period and that the digital ruble should not be mandatory for retail payments. Its basis is a draft law that would require large retailers to accept digital ruble payments by July 2025.
Russia’s campaign to increase the use of its fledgling central bank digital currency is part of the law, which in addition to mandates for retailers who have to accept the digital ruble also imposes criminal penalties. The draft requires large federal retailers to comply with the new system by July 2025, smaller businesses by the end of phase one, and a later cutoff if their annual revenue falls below that amount.
Russia’s Digital Ruble Implementation Could Be Gradual
But the Ministry of Industry has sounded the alarm over rushed rollout, saying that lack of infrastructure could be a severe setback for businesses. The ministry responded to the proposed legislation, saying it has so far not laid down clear guidelines on how the digital ruble will work and that more time is needed to finalize software, update the information systems, test its work, and train staffers.
To tackle these issues, the Ministry of Industry is urging the government to extend lasting for the next two years. The ministry says this additional time will help reduce the risks of implementing it and also assist businesses in fully preparing to use the currency.
If pilot programs of the digital ruble go according to plan, mass implementation could start as early as July 2025, Elvira Nabiullin, governor of the Central Bank of Russia, said. But she added that adoption would be gradual, with most people using it five to seven years out.
The rollout of the digital ruble will be a «natural process» and will occur «following the business` and consumers` perceived benefits and interests,» Nabiullina said. Speaking from Moscow, the Bank of Russia’s cautious approach to CBDC reflects both the responsibilities that accompany its rollout and how the introduction of such currency has the potential to dramatically reshape the country’s financial system.
