As Russia rolls out the digital ruble from Tuesday, major domestic banks and retailers will be able to make payments and transfer money using the currency.
Individuals using participating banks’ mobile applications will be able to open digital ruble accounts. A maximum of 300,000 rubles per month can be transferred from traditional bank accounts to these accounts.
The same limit will not apply to transfers made by businesses to digital ruble accounts. The digital ruble will become Russia’s third national form of currency, alongside cash and rubles held in bank accounts, and will have the same value as the other forms of the ruble.
Central Bank to operate the system
Unlike cryptocurrencies, the digital ruble will be issued and backed by the Central Bank of Russia.
The Central Bank of Russia is also working to integrate the digital ruble with digital currency systems operated by other central banks. The aim is to reduce dependence on intermediaries and transaction costs, while limiting sanctions-related risks in international payments.
EU bans digital ruble transactions
The European Union banned transactions conducted using the digital ruble under its 20th package of sanctions, adopted on April 23.