Russia’s Ministry of Industry has proposed a two-year transition period to help businesses adjust to digital ruble payments in the retail sector. The goal is to give businesses enough time to adopt the system.
Ministry Calls for Delay in Digital Ruble Rollout
The Ministry of Industry has requested a delay in the digital ruble’s implementation due to infrastructure readiness concerns. They fear that businesses may struggle to meet the 2025 deadline, which requires large retailers to accept payments in the digital currency (CBDC).
According to a report by Izvestia, the ministry believes a rushed transition could disrupt business operations. Without proper preparation, businesses may face difficulties adopting the new system.
Concerns Over Business Readiness
The proposed law mandates large retailers to accept digital ruble payments by July 2025. Smaller businesses would face later deadlines based on their annual revenue.
In response, the Ministry of Industry has suggested a two-year delay. This would allow businesses time to finalize operational guidelines, upgrade software, and train staff.
Digital Ruble Infrastructure Still Under Development
The infrastructure for the digital ruble’s full rollout is still in development. The Ministry of Industry highlighted that the lack of clear guidelines and the need for software updates justify the call for more time.
Global Trends in CBDC Adoption
The Bank of Russia has already begun pilot programs for the digital ruble. Central bank governor Elvira Nabiullina believes mass adoption could occur by July 2025. However, she emphasized that the process will likely take five to seven years for full implementation.
Globally, 134 countries are exploring central bank digital currencies (CBDCs), accounting for 98% of the global economy. This marks a sharp increase from 35 countries in 2020.
Challenges in Other Countries’ CBDC Projects
Other countries have faced difficulties with their CBDC projects. For example, China’s digital yuan project has experienced setbacks, which some reports attribute to economic challenges. Meanwhile, the European Union is still in the design phase of its CBDC initiative.
Leadership Changes at the Bank of Russia
Amid these developments, there has been a leadership change at the Bank of Russia. Olga Skorobogatova resigned from her role as the first deputy governor.
The Ministry of Industry’s proposal for a delay reflects global efforts to manage the complexities of CBDC adoption.
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