Russia's New Bill Mandates Digital Ruble Use for Banks and Merchants

Proposed Legislation for Digital Ruble in Russia

A new legislative initiative is making waves in Russia as a bill has been introduced to the State Duma that aims to mandate the use of the digital ruble by banks and merchants. This significant regulatory change also includes the implementation of a universal QR code payment system that is expected to enhance the payment landscape in Russia.

Details of the New Bill

According to reports from Odaily, the proposal has been championed by a coalition of senators and deputies, prominently featuring Anatoly Aksakov, the Chairman of the Duma Financial Markets Committee. The bill has officially entered the digital database of the lower house, marking the beginning of its legislative journey.

Phased Implementation Timeline

The bill is structured around a phased introduction of the digital ruble:

• Starting July 1, 2025: The digital ruble will target systemically important banks, which are essential for the stability of the national economy.
• By 2027: All banks in the country are expected to adopt the digital ruble as part of their operations.

This staggered approach aims to ensure a smooth transition to the new digital currency system, maintaining stability within financial institutions.

Merchant Compliance and Requirements

In an effort to encourage public acceptance of the digital ruble, merchants will be required to accept it as a form of payment. Here are some specifics regarding the merchant requirements:

• By July 2025, any business with annual revenues exceeding 30 million rubles must facilitate digital ruble payments.
• This threshold will be lowered to 20 million rubles by July 2026, expanding the circle of compliance.
• Businesses operating in areas with limited mobile or internet access will be exempt from these obligations.

The Role of QR Code Payment System

The legislation integrates a universal QR code system, which aims to streamline payment processes and enhance the convenience of using the digital ruble. This move is expected to facilitate seamless transactions across the merchant landscape, making digital payments more accessible and efficient for consumers.

Consumer Protection Amendments

In addition to the infrastructural changes, amendments to consumer protection laws will be necessary to ensure that merchants comply with the new regulations. This is crucial for fostering a trustworthy environment for consumers who are adopting the digital ruble.

Conclusion

The proposed legislation is positioned to significantly reshape the landscape of banking and payment systems in Russia. By facilitating the use of the digital ruble and ensuring compliance among merchants, the government is taking a substantial step towards a more digital economy. As the bill progresses through the State Duma, its impact on the financial sector will be closely monitored by stakeholders within and outside Russia.