Russia to Go Through Massive Legal Reforms Because of Its Official Digital Currency Project

Government of Russia has amended several laws of the country with the aim of dealing with virtual assets and currencies, yet further massive legal reforms are required for backing up the Russian digital Ruble – a national CBDC project. The policy and lawmakers have been recommending a new and separate regulatory framework for the digital Ruble which has to be distinct from that of usual virtual currencies and assets.

Already the Government of Russia has brought in several amendments into the existing laws for dealing with virtual currencies and assets. However, it has to now go through a hectic exercise of legal reforms because the Government is working on an official digital currency of Russia.

Some of the journalists had earlier asked President Vladimir Putin whether he would like to use cryptocurrencies for international payment settlements. In response, he had said that for the time being he does not want to settle international payments through cryptocurrencies.

However, in the distant future, the possibility can be explored but not in present times. He however suggested that Russia would need to though develop a digital currency of its own. The President was certainly referring to the “Central Bank Digital Currency”, a project on which multiple nations are working on currently.

On the same lines with other countries, Russia too has been keen in transforming Ruble into “digital Ruble”. According to unofficial sources, it has been rumored that the Bank of Russia has almost done away with the CBDC project. If the rumor is true, then massive legal reforms will take place in Russia.

A number of existing laws in Russia will need to be amended and modified and, in addition, further provisions have to be incorporated. This is necessary for ensuring that each law covers the digital Ruble because digital Ruble is going to be distinct from normal cryptocurrencies.

The digital Ruble will ultimately be regulated, issued and governed by the Bank of Russia and regulation will necessitate legal reforms. On the other hand, digital currencies and assets are not regulated as they should be in Russia. Therefore, amended a few laws, would suffice the issue of virtual assets and currencies. In the case of digital Ruble however the entire regulatory system will have to be modified.

Anatoly Aksakov, Chairman of Russian Senate Committee on Financial Markets, said that Senators have been apprised about required reforms. They have been given the go-ahead to point out laws which need to be amended in the first place.

They have recommended that each of the existing laws will have to be taken up individually and seen whether the law requires amendment. It is being expected in Russia that the digital Ruble project will be completed by January 2022. The legal reforms will therefore need to be put on a fast pace basis.

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