Digital currency, the Russian ruble in digital format, will be gradually introduced, as stipulated by law, signed by Vladimir Putin.
The Russian government is set to integrate the digital ruble, an additional form of the national currency, into its budgeting processes. This digital currency, which is equal in value to one cash or non-cash ruble, will soon become a standard means for carrying out various government-related payments.
The legal framework for the digital ruble's usage was established earlier this year, defining its account and the responsibilities of the Central Bank in managing it without charge. Since the pilot project began in the summer of 2023, over 63,000 digital ruble transfers have been made, and over 100,000 digital ruble operations have been conducted by the end of June.
From October 1, 2023, the federal budget can utilise the digital ruble for certain categories of expenses, as approved by the government in agreement with the Bank of Russia. This marks the beginning of the digital ruble's integration into the federal budget, with more expansive use planned in the future.
By the end of 2024, the number of digital ruble users had grown to 9,000 citizens and 1,200 companies. The full rollout of the digital ruble is scheduled for September 2026, with phased adoption requiring large banks and merchants to support CBDC services by 2027, and smaller businesses by the end of 2028.
Starting with a pilot initiative in October 2025, the digital ruble will be used for welfare payments, including pensions. This move is part of a broader strategy to reduce reliance on foreign financial systems and improve domestic monetary sovereignty. Testing of the digital ruble by selected banks began in 2021 and is expected to intensify from mid-2025, reflecting the preparatory steps towards full-scale use in budgetary processes.
The digital ruble account of the Federal Treasury, as introduced by the law, allows participants in the treasury payment system to conduct transactions using the digital ruble. While details on regional or local budgets and state extra-budgetary funds usage are not explicitly detailed, they are likely included as the law permits the digital ruble for all federal budget mechanisms, which customarily extend to these levels.
In summary, the digital ruble is poised to be used formally within federal budgeting processes starting with the welfare payments pilot in late 2025, progressively expanding its role in government disbursements including regional, local budgets, and possibly state extra-budgetary funds, with full operational integration planned over the next few years.
The digital ruble, initially envisioned for welfare payments, is expected to extend its use beyond federal budgeting processes, potentially involving regional and local budgets, and state extra-budgetary funds, given the law's allowance for the digital ruble in all federal budget mechanisms. As technology advances, this shift in currency usage may also impact various sectors of the industry, particularly finance, where digital transactions could become the norm.
