Russian lawmakers approve first reading of bills establishing regulation and publication of CBDCs
According to local media, Russia’s State Duma approved bills establishing a system for issuing and regulating central bank digital currencies (CBDC) in first reading on March 16.
Additionally, parliament approved the first reading of a draft law that amends the Russian Civil Code and defines the digital ruble as “non-cash currency”. It also establishes rules regarding wallet agreements and digital currency inheritance.
Both bills primarily cover regulatory gaps arising from the digitization of a currency.
Both bills will now go through a review process and be finalized for a second reading based on feedback from lawmakers. The second reading will take place in the coming months.
Protection of personal data
The current version of the bill establishing the CBDC system includes a proposal to change the law and allow Russia’s central bank – the issuer of the digital ruble – to process users’ personal data without consent.
However, legislators do not agree with this notion and believe that it would undermine the right of citizens to confidentiality and protection of personal data.
Parliament said it had tasked the Financial Markets Committee with finalizing the bills for a second reading and ensuring that personal data is appropriately protected in the new digital ruble system.
Imminent digital ruble
The bills make the central bank the sole issuer of the digital ruble and grant the regulator additional powers to ensure proper oversight.
Under the bills, the digital ruble issued by the Russian central bank will be considered an official representation of the country’s currency and will similarly consider all foreign digital currencies issued by a central bank as official currencies of the country. State.
The legislation establishes a fundamental framework for the digital ruble, which includes setting up a platform that will issue the CBDC and developing wallets to store it. The bills also define the procedures for accessing the platform and the rules for participants.
Russian lawmakers approve first reading of bills establishing regulation and publication of CBDCs
