Putin Signs Digital Ruble Introduction Law... In Response to Western Financial Sanctions

Russia, facing difficulties in international financial transactions due to Western sanctions following the invasion of Ukraine, is introducing a digital currency (CBDC) called the digital ruble to circumvent these sanctions.

[Image source=Yonhap News]

According to Russian state media on the 25th (local time), President Putin signed a law the day before to introduce an electronic platform related to the digital ruble. Accordingly, the digital ruble can be used as a means of payment and transfer, and inheritance will also be possible.

Such transactions will be possible through the newly introduced digital ruble platform. However, opening bank accounts or obtaining loans using the digital ruble will not be allowed.

This measure is interpreted as a response to the strengthening of Western sanctions, such as the expulsion of Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) following Russia's invasion of Ukraine in February last year.

The digital ruble is scheduled to be issued in large quantities starting in 2025.

This content was produced with the assistance of AI translation services.