Local media reports state that the Russian State Duma approved draft laws to regulate and issue central bank digital currency (CBDC) at its first reading, March 16.
Additionally, the Parliament approved the first reading of a bill that makes changes to the Russian Civil Code and defines the digital ruble as “non-cash money.” It also establishes rules around wallet agreements and the inheritance of digital currency.
The bills mostly address regulatory gaps that result from the digitalization a currency.
The bills will be reviewed and finalized for the second reading after lawmakers have provided feedback. The second reading of the bills will be in the following months.
Privacy of your personal data
The current version of the bill establishing the CBDC system includes a proposal to change legislation and authorize the Russian central bank — the issuer of the digital ruble — authority to process the personal data of users without consent.
However, lawmakers disagree with the notion and believe that it would undermine citizens’ right to personal data privacy and protection.
The Parliament has given instructions to the financial markets committee for finalizing the draft laws and ensuring that personal data are appropriately protected under the new digital ruble.
Digital ruble imminent
The draft laws make the central bank the sole issuer for the digital ruble, and also give the regulator additional power to ensure that appropriate supervision is provided.
Under the draft laws, the digital ruble issued by the Russian central bank will be deemed an official representation of the country’s currency and will similarly consider all foreign digital currencies issued by a central bank to be official state currencies.
The legislation provides a framework for the digital ruble. It includes the establishment of a platform to issue the CBDC, and wallets for its storage. The draft laws outline the rules and procedures for accessing the platform.