Russia’s Digital Ruble Plan Faces Delays: Two-Year Transition Period Sought

The Russian Ministry of Industry has proposed a two-year transition period for implementing digital ruble payments in retail, citing concerns over unprepared infrastructure.

Challenges of Mandatory Digital Ruble Payments

A response to a draft law that would make digital ruble payments mandatory for large retailers by July 2025, the ministry warned that the rushed implementation of the system could create serious challenges for businesses. The proposed legislation includes a provision requiring retailers to provide customers with the option to pay using the digital ruble. According to the draft, large federal retailers must comply by July 2025, while smaller businesses may receive a delayed implementation depending on annual revenue.

Need for Clear Operational Guidelines

However, the Ministry of Industry outlined in a response to the government’s proposal the lack of clear operational guidelines for the digital ruble. The ministry particularly emphasized the need for additional time to finalize software, update information systems, conduct testing, and train staff to reduce the risks associated with the implementation of the digital ruble.

A Two-Year Transition Period

To address these concerns, the ministry is reportedly calling for a two-year transition period to give businesses time to adjust to the new system. This would allow for a smoother implementation, reducing the likelihood of technical issues and improving the overall user experience.

Swiss-like Approach to CBDC Adoption

Elvira Nabiullina, the central bank governor of Russia, stated that if pilot programs for the digital ruble proceed as planned, the country could launch the digital currency in a “mass implementation” by July 2025. However, she noted that the transition will be gradual, and the widespread adoption of Russia’s CBDC could take five to seven years, emphasizing that it will be a “natural process” driven by the needs and convenience of businesses and consumers.

Key Takeaways

Here are a few key takeaways from the Russian Ministry of Industry’s proposal:

  • A two-year transition period is recommended to implement digital ruble payments in retail, addressing concerns over unprepared infrastructure.
  • Mandatory digital ruble payments for large retailers should be implemented by July 2025, with smaller businesses receiving a delayed implementation based on annual revenue.
  • Clear operational guidelines are necessary to ensure the successful implementation of the digital ruble.
  • A gradual transition is anticipated, with widespread adoption taking place over a period of five to seven years.

For more updates on the digital ruble and its implementation, stay tuned to Crypto News for the latest developments.

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