On May 22, the Russian law makers agreed to amend the digital ruble bill. Based on Russian law, the bill has been presented before the members of parliament several times for further review.
After thoroughly reviewing the bill, the policymakers agreed to incorporate debt operation features, the role of the Russian apex bank, and outline the services for individuals residing outside the country.
Importance of Amending the Digital Ruble Bill
The report issued by the local news site Interfax revealed the Committee on the Financial Market had submitted its proposal before the bill’s second reading. In their submission, the policymakers are urging the authority to prohibit the Central Bank of Russia from engaging in funding projects for companies.
However, the legislator urged the central bank to focus on supervising the operation of the digital ruble. They requested the apex bank to adopt effective security measures to protect confidential customer information. The report instructed the central bank to avoid disclosing sensitive data of the Federal security service (FSS) officials.
Undeniably the legislator introduces multiple proposals for improving the accessibility of central bank digital currency (CBDC). For the non-resident crypto proponent, the legislators tasked the foreign banks in the region to be allowed to access the country’s digital fiat.
Additionally, the legislators urged the authority to legally allow foreign financial institutions to access the Russian digital fiat platform. Under the new draft, the legislators have eliminated barriers that hinder non-residents from accessing the Russian CBDC.
On the contrary, the current bill allows the regulatory agencies in the region to withdraw debtors’ assets under specific conditions without any limitation. According to the bill, if the debtor owns a measurable amount of digital rubles, the regulatory agencies can withdraw the assets.
Scope of the New Bill
Citing Russian law, the above provision is considered unlawful to withdraw below the minimum wage level, which amounts to $195 monthly income. A recent publication revealed that the legal team at the State Duma department has been against the current bill.
In March, the Russian legislators approved Bill number 270838-8, commonly known as the digital ruble bill, after the first reading. Afterward, the legislators agreed to pass the digital ruble bill into law in April since it was crucial for conducting the CBDC pilots. Per the legislators’ report, the new bill was expected to undergo a preliminary hearing in July.
However, the deadline has been extended since the legislators are mulling over the suitability of the current bill.
Russia has replicated efforts made by its neighboring country Belarus in launching the CBDC pilot projects. A report from Pavel Kalaur, the chairman of the national bank of Belarus, revealed that the country plans to launch its digital fiat in Q4.