Russia Proposes Two-Year Extension for Digital Ruble Launch Timeline

Extension of Timeline for Digital Ruble Launch

According to Odaily, the Russian Ministry of Industry and Trade has put forth a proposal to extend the timeline for the launch of the digital ruble by two years. This adjustment aligns the timeline with smaller retailers, ensuring that all sectors are adequately prepared for the transition to this new form of currency.

Central Bank’s Initial Timeline

In October, the Central Bank of Russia outlined its strategy for the digital ruble's introduction through a formal bill submitted to the State Duma. According to this bill, a large-scale rollout is scheduled for July 1, 2025. By this deadline, it is expected that the largest banks and retailers will support the central bank digital currency (CBDC).

Regulatory Framework and Implications for Retailers

The proposed deadline applies to retailers with a turnover exceeding 30 million rubles (approximately $274,000). Those retailers with revenues between 20 million and 30 million rubles are granted an additional year to comply, while smaller businesses will receive a two-year extension.

Concerns Over Readiness

The Ministry further expressed that there are currently no established rules governing the operation and functionality of the digital ruble. This lack of clarity leaves retailers with insufficient time to prepare and adjust their point-of-sale systems, a concern echoed by various trade organizations.

Industry Voice: Retail Companies Association (ACORT)

The Retail Companies Association (ACORT) has advocated for a more flexible implementation approach. In a letter, they stated, "We believe it is necessary to avoid setting specific deadlines through legislation for the system's introduction at the trade level and to provide at least a two-year transition period during which companies can undertake the necessary work." This highlights the industry's need for more time and a clearer framework before the digital ruble is fully operational.

Conclusion

The proposed extension reflects the Ministry's acknowledgment of the challenges retailers face as they prepare for this transition. As the digital ruble implementation approaches, it will be crucial for regulatory bodies to establish comprehensive guidelines to ensure a smooth integration for all businesses involved.