Russia’s official backs CBDC as key tool for business to dodge sanctions: report

A Russian lawmaker has highlighted the role of the digital ruble in helping businesses circumvent sanctions and streamline operations.

Russia Central bank digital currencies – also known as the digital ruble – will simplify the lives of entrepreneurs, especially those affected by sanctions, according to Artem Kiryanov, deputy chairman of the Duma State Economic Policy Committee.

In a interview With the Russian News Agency, Kiryanov explained that the digital ruble provides a great advantage to entrepreneurs, especially those who are engaged in foreign trade.

“Using the digital ruble will primarily help entrepreneurs deal with cross-border economic activities. It will facilitate operations amid sanctions. »

Artem Kiryanov

He stressed that the digital ruble guarantees complete transparency in government purchases, providing a much-needed solution to control financial flows

“Everything that happens within the framework of state and municipal procurement should go through the digital ruble. It will improve financial discipline and prevent fraud or unauthorized fund transfers. »

Artem Kiryanov

Russia It has been piloting its central bank digital currency since August 2023, and it is expected to be available for widespread use by mid-2025. Central Bank Governor Elvira Nabiullina earlier confirmed That if the pilots are successful, the digital ruble will be rolled out in “mass implementation” by July. However, she noted that the transition would likely take several years.

In a consultation document from October 2020, the central bank reassured citizens that the proposed CBDC will supplement, not replace, existing cash and non-cash rubles in circulation. In contrast, China, a key benchmark for Russia’s digitalization efforts, began Salary-paying civil servants in Changshu state using its own CBDC, the digital yuan, to encourage adoption of the state-controlled currency.