Originally published July 24, 2023 7:00 am PDT

Russian President Vladimir Putin has officially approved a law paving the way for the introduction of the digital ruble, establishing it as the third variant of the country’s national currency, alongside physical and non-physical forms, according to a report from the Russian news website Pravda.

According to the document, which was made public on the country’s official legal information website, the key clauses of the law are slated to take effect on August 1, 2023.

With the new law in place, transactions involving the digital ruble can only be performed on a specialized platform, overseen by the Bank of Russia.

In addition, the regulatory protocols for the digital ruble platform are to be published on the official site of the banking regulator.

Further, it has been clarified that the Central Bank is committed to ensuring the confidentiality of all digital ruble accounts.

Unlike decentralized cryptocurrencies, the digital ruble will be a digital asset, secured in a dedicated electronic wallet and solely issued by the Bank of Russia.

This new form of digital currency is designed to provide the Russian public with an additional medium for purchasing goods and services, making payments, transferring money, and conducting transactions with financial instruments and assets.

However, it is worth noting that these digital rubles cannot be added to bank deposits.

The Central Bank first announced the commencement of a pilot project for the digital ruble in January 2022, with 34 credit institutions currently participating in the experimental stage.

The general public is expected to be introduced to the digital ruble in Russia around the start of 2025.