Experts named five fundamental shortcomings in regulating the digital ruble

A number of conceptual legal problems caused by the technological nature of the digital ruble remained unresolved in the adopted legislation on the new form of currency. In particular, there is a significant imbalance in the rights and obligations of the Bank of Russia, according to the article “Legal basis of digital currencies of central banks and the digital ruble,” published in the journal NIFI of the Ministry of Finance. The lack of a well-developed legal framework creates serious legal and reputational risks that could undermine citizens’ trust in the new digital form of the national currency, the study notes.

Russia became the first country in the world to create a legal framework for the introduction of a central bank digital currency at the legislative level, the article says. On August 1, 2023, the law on the digital ruble (No. 340-FZ) came into force in Russia, which introduced changes to six federal laws. In addition, in connection with the introduction of a new form of national currency, a separate law No. 339-FZ amended the Civil Code (Civil Code) of the Russian Federation. The Bank of Russia began developing the digital ruble in 2020, and in August 2023, almost immediately after the adoption of the law on the digital ruble, the regulator began testing a new form of currency on real transactions. 13 banks, 600 citizens and 30 retail outlets in 11 cities of the country were allowed to participate in the pilot project. Russian Finance Minister Anton Siluanov predicted that the circulation of the digital ruble will begin before the end of the year.