Putin calls for “full-scale implementation” of digital ruble

The Bank of Russia's CBDC has proven its "efficiency and functionality"

Riley Waggaman

Praising the “efficiency and functionality” of the Bank of Russia’s CBDC, Russian President Vladimir Putin instructed his government on Wednesday to prepare for the widespread introduction of the digital ruble.

“Now we need to take the next step, namely: move to a broader, full-scale implementation of the digital ruble in the economy, in business activities and in the financial sector,” Putin said during a meeting on economic issues.

Since August 2023, the Bank of Russia has been conducting a pilot program for the digital ruble involving 12 banks, 600 individuals and 22 trade service enterprises. The program will be expanded in September to include an additional 20 credit institutions. Participants will be able to make payments via QR code during the second phase of testing.

The law on the digital ruble was adopted in July 2023, designating the Bank of Russia’s CBDC as the third form of national currency. The CBDC will be introduced into the economy beginning in 2025.

Despite widespread opposition to the digital ruble from across Russia’s political spectrum, the Bank of Russia and its media cheerleaders claim that the traceable, programmable, centralized digital token will help bypass sanctions and fight corruption through greater financial transparency.

However, Moscow already has an alternative to SWIFT that can be used to circumvent sanctions, and the Bank of Russia already has the ability to monitor all money transfers in the country.

On Russian Telegram channels, reactions to Putin’s call for the “full-scale implementation” of the digital ruble were mostly negative.

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The good news is that the Russian government might be too incompetent to fulfill Putin’s dream of a CBDC paradise.

“Considering the fantastic ability of the Russian authorities to fail any projects, skepticism about [the widescale adoption of the digital ruble] does not dissipate,” Russian commentator Anatoly Nesmiyan observed.

Riley Waggaman is an American writer and journalist who has lived in Russia for close to a decade. He has contributed to many websites, including Anti-Empire, Russian Faith, Brownstone Institute, Unlimited Hangout, and Geopolitics & Empire. He worked for Press TV, Russia Insider, and RT before going solo. You can subscribe to his Substack here, or follow him on twitter or Telegram.