The law, documented by the State Duma as Law No. 270838-8, was passed as part of a package of bills introduced at the end of December 2022 to usher in the new currency in Russia. Another bill integrating the digital ruble into the country's tax regulation and control system is currently working its way through the parliament.
The adopted law includes several key provisions to regulate the digital ruble and its platform. Notably, it clarifies that digital ruble accounts cannot be credited, and interest on the balance of digital rubles is not allowed. Joint digital ruble accounts, designed to serve multiple users, are also strictly prohibited under the new legislation. (Related: Australia launches CBDC test program, complete with carbon credit trading.)
According to the law, the Central Bank of Russia (CBR) has the right to reject a digital ruble transaction from any bank on the order of a client if any signs of unauthorized transactions are detected.
The law also extends the right of the central bank to determine the digital ruble platform's user base and the list of permitted transactions, along with their threshold amounts, until Dec. 31, 2024. Any such decisions must be agreed upon with the Federal Financial Monitoring Service.
However, in such cases, the CBR is obligated to inform the bank or client about the possibility of sending a revised order for the same amount and using the same details in a way that complies with regulations. Once a revised order is received, the central bank is obliged to carry out the transaction accordingly.
The law also permits the CBR to enter into agreements with operators of digital currencies issued by foreign states or multi-national organizations. This could expand the potential reach and scope of Russia's digital ruble.
CBR First Deputy Chairman Olga Skorobogatova previously expressed the idea of creating a digital national currency that goes beyond a single country and serves a broader geographic region.
The Russian Public Commission for Family Protection even suggested that the digital ruble could serve as a means to bypass international sanctions.
However, this proposed central bank digital currency (CBDC) has ignited concerns about the potential implications of this programmable digital token.
Activist group Katyusha made accusations about the alleged globalist nature of the digital ruble project. The group argued that the implementation of this CBDC is not unique to Russia but is part of a broader plan backed by global financial institutions like the World Bank, the International Monetary Fund and the World Economic Forum.
The group claims that this new form of currency will be directly controlled by the Russian central bank devoid of traditional fiat money features and under constant modification, just like the proposed and implemented digital currencies in China, the U.S. and the European Union.
Noted economist Valentin Katasonov stated that the digital ruble has the potential to become an "electronic concentration camp." He fears that this digital currency could be used as a tool for extensive surveillance, controlling people's behavior and even blocking access to the digital ruble account in cases of "bad" behavior.
Some critics even go so far as to claim that the digital ruble might be forcefully introduced during times of economic crisis, leading to exceptional levels of government control.
Follow CryptoCult.news for more news about digital currencies.
Watch the video below to know more about the central banks' plan to introduce a CBDC microchip implant.
This video is from the Rick Langley channel on Brighteon.com.