The Russian State Duma is considering using the digital ruble to maintain transparency in public spending and to sidestep sanctions. Deputy Chairman of the State Duma Committee on Economic Policy Artem Kiryanov highlighted the importance of these use cases for Russia’s future.
Russian State Duma Acknowledges Digital Ruble Could Be Used to Avoid Sanctions
The Russian State Duma, the equivalent of the U.S. Chamber of Representatives, has recently considered the uses that the digital ruble, Russia’s upcoming central bank digital currency (CBDC), will have.
Deputy Chairman of the State Duma Committee on Economic Policy Artem Kiryanov has considered two key use cases of the CBDC, which is still in the testing phases before its implementation: transparency of public spending and international settlements.
Kiryanov first highlighted the advancements that the digital ruble would bring to controlling budget expenditures and overseeing public spending.
Talking to local media, Kiryanov stated:
The digital ruble is important for the state. Everything that is carried out within the framework of state and municipal procurement must go through the digital ruble, because the transparency of the digital ruble is 100%
Furthermore, he assessed that today’s methods, combined with the digital ruble, would give the state a “serious tightening of financial discipline,” eliminating the incentives for taking money from state procurement accounts.
In addition, Kiryanov commented on the possibilities that the digital ruble would open for international exchanges in the context of the sanctions the Western world has enacted against Russia.
“The digital ruble will be used mainly by entrepreneurs who conduct foreign economic activity,” Kiryanov remarked. “This will help them conduct transactions against the backdrop of sanctions and make life easier,” he concluded.
In July, President Putin recognized the relevance of the digital ruble proposal, calling to establish the regulations necessary to implement the digital ruble as part of the Russian economy
This call was abided by lawmakers, who passed the laws necessary to rehabilitate CBDC payments in the country.
Read more: Putin Calls to ‘Seize the Moment’ to Kickstart Digital Ruble and Crypto Adoption In Russia
Putin also confirmed that the digital ruble would be part of the federal budget system and reported that institutions were targeting a nationwide launch and adoption of the CBDC by July.
Read more: Putin Confirms Digital Ruble Integration in Russia’s Federal Budget
