Russia to Force the Use of Digital Ruble on Large Businesses by 2026

Russia is taking giant steps towards launching its central bank digital currency (CBDC), the digital Ruble.

According to recent reports, the country will soon be forcing large businesses within its domain to accept the digital Rubble as a means of payment. This is a strategy to improve the quality of financial services.in the country.

Recall that Russia has been under financial sanctions that have made it impossible to carry out international payments. As a result, the government reluctantly allowed the use of digital currencies like Bitcoin for payments.

However it has been working tirelessly to create the digital Ruble, which will be a replacement for decentralized cryptocurrencies. It will be issued by the country’s central bank, and can be easily monitored. 

Digital Rubble to be Used in 2026

According to the report, plans are already underway to launch the CBDC and force large businesses to adopt it by October 1 2026. Businesses exceeding 30 million Rubles a year in revenue will be required to adopt the currency by then. 

Businesses that make 20 million Rubles or less in a year will be required to adopt the digital Ruble by October 1, 2027, while retailers making less than 5 million Rubles a year are exempted for now.

The digital Ruble will be the blockchain based version of the Russian national currency, and will be used alongside cash and electronic money. The central bank has started testing the CBDC since 2021, and in 2023 conducted a worldwide pilot with 600 participants from 12 banks. 

In 2024, the pilot will be expanded to include more banks and tens of thousands of organizations, businesses, and individuals. This will take the testing phase to features like QR code payment and business-to-business transfers. 

The 2023 pilot covered digital wallet management, fund transfers, automatic payments with close friends only.

Skepticism About CBDCs

Ever since the idea of CBDCs came on board, many countries have embraced the concept and are working on it already. However, the public has always taken it with a pinch of salt. It is widely believed that CBDCs are a means of gaining financial control over the citizens.

While the government has always defended it as a way to provide financial inclusion and also fight crimes, some countries’ approach to CBDCs actually gives cause to worry. In Brazil, which is one of the most advanced countries in CBDC development, it is said that there’s a secret code that allows the government to cease users’ funds.

The forcing of businesses to accept the digital Ruble could also be a reason to raise eyebrows, but hopefully it will not be another privacy-invading move.