Anatoly Aksakov, a prominent lawmaker involved in the recent legislation on Russia’s new digital ruble, states that the innovative currency will enhance the efficiency of expenditure for both governmental and household budgets. He further detailed the unique benefits of this programmable central bank currency.
The digital ruble legislation, recently ratified in Russia, authorizes the Bank of Russia to regulate the use of its central bank digital currency (CBDC). The chairman of the Parliamentary Financial Market Committee, Anatoly Aksakov, anticipates the imposition of certain restrictions upon the CBDC’s debut.
The State Duma, Russia’s lower house of parliament, passed this law last week, which was subsequently approved by the Federation Council, the upper house of the Federal Assembly of Russia, on Wednesday. The legislation will become operative once it receives the signature of Russian President Vladimir Putin.
In a discussion with the Parlamentskaya Gazeta newspaper, Aksakov noted that the digital version of the Russian ruble will provide government authorities and the currency’s users with the ability to supervise how their money is expended by others via smart contracts.
“To illustrate, money given to a school-going child, with the stipulation that it be used solely for breakfast, books, or textbooks, can’t be spent otherwise. No matter how much the child wishes to utilize it for different purposes, it won’t be possible,” Aksakov clarified.
“In other words, the specific purpose for which parents allocate money to their child will be predetermined,” the legislator further commented. This indicates that children won’t be able to purchase unhealthy sweets with their parent’s digital rubles, as elucidated by the official publication of the Russian parliament.
Anatoly Aksakov highlighted that this same principle will be applicable for state money designated for specific programs. He is of the opinion that this will augment the effective use of budgetary funds. He is also convinced that businesses can leverage this programmable CBDC in their transactions.
What are your views on the programmable central bank digital money? Let us know in the comments section below.
Frequently Asked Questions (FAQs) about Digital Ruble
What is the digital ruble and how does it work?
Who is responsible for regulating the digital ruble?
What are the advantages of programmable central bank digital money?
How will the digital ruble affect children’s spending habits?
With the digital ruble’s programmable features, parents can control how their children spend the money allocated to them. For instance, they can ensure the funds are used solely for specific purposes like school-related expenses and prevent their children from spending on other items.
Can businesses benefit from the programmable digital ruble?
When will the digital ruble be launched?
The digital ruble legislation has been recently adopted, and the launch date will be determined by the Central Bank of Russia after setting necessary restrictions and regulations.
What is the process for implementing smart contracts with the digital ruble?
More about Digital Ruble
- “Russia’s New Digital Ruble Law Allows Limiting CBDC Use” – CoinDesk (https://www.coindesk.com/russias-new-digital-ruble-law-allows-limiting-cbdc-use)
- “Anatoly Aksakov Discusses Advantages of Programmable Central Bank Money” – Cointelegraph (https://cointelegraph.com/news/anatoly-aksakov-discusses-advantages-of-programmable-central-bank-money)
- “Understanding Central Bank Digital Currencies (CBDCs)” – International Monetary Fund (https://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2021/06/24/Understanding-Central-Bank-Digital-Currencies-50109)
- “Digital Ruble and Its Impact on Budgetary Funds” – The Moscow Times (https://www.themoscowtimes.com/2022/01/10/digital-ruble-and-its-impact-on-budgetary-funds-a76040)