Major Russian Companies Will Be Forced to Accept Digital Ruble Payments, While CBDC Reluctance Persists

Report Claims That Leading Russian Corporations Must Begin Accepting Digital Ruble Payments by October 2026

Russian companies will have to accept digital ruble payments.

📷 Tim Alper Last updated: March 10, 2024 23:00 EDT | 3 min read

📷 Major Russian Companies ‘Will Be Forced to Accept Digital Ruble Payments’

According to a new report, major Russian companies will be obliged to accept digital ruble payments starting from October 2026. Smaller firms are likely to follow suit by October 2027. This move comes as government and Central Bank officials seek to amend the nation’s law “on the protection of consumer rights” (source: Interfax). The new rules will apply to vendors, including data and service providers, with an annual revenue above $330,000. Companies with an annual revenue ranging from $220,000 to $330,000 will have an additional year to comply. However, smaller firms with an annual revenue below $55,000 will be exempt from this obligation.

Central Bank to Use Familiar Adoption Strategy

The Central Bank and the Kremlin have previously utilized a similar approach with the Mir payments system, which was introduced in 2017. The amendment for the digital ruble will also incorporate provisions for the Faster Payments System (SBP), another Central Bank project. The SBP enables individuals to instantly transfer funds using mobile phone numbers, pay for purchases, utility bills, and make various other transfers (source: Central Bank).

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Key information:
– Larger firms must adopt SBP by October 1, 2024. – Medium-sized companies have until October 1, 2025, to comply.

The Central Bank has revealed its intentions to implement a staged approach to ensure a smooth transition for merchants. This strategy proved to be effective when introducing the mandatory acceptance of Mir payment cards.

📷 A smartphone user uses the Russian SBP app. (Source: George Konnov/YouTube)

The amended bill is yet to be approved by lawmakers, signaling a significant departure for the Central Bank, which previously claimed that the use of the digital ruble would be voluntary.

CBDC Reluctance in Russia?

There are suggestions that the public remains wary of the Central Bank coin. An anonymous Moscow-based business operator expressed uncertainty regarding the necessity of the digital ruble, stating, “I have no idea how it’d help me or my business at this point” (source: Blocking.net.com). However, some analysts contend that the Central Bank is secretly preparing to issue mandatory CBDC pension and benefits payments, contradicting its previous statements.

Amid concerns, the Central Bank has clarified that its current focus is on adoption among major Russian companies. The bank aims to promote competition, enhance the quality and availability of payment services, and facilitate settlements in digital rubles. Business-to-business (B2B) transfers using the digital ruble will incur a 0.3% commission fee, while transfers between individuals will be commission-free.

Key information:
– The bank’s move is expected to reduce payment service costs for merchants.

📷 Major Russian Companies Stand to Benefit from Digital Ruble?

According to official figures, by the end of 2023, 1.5 million Russian firms had already adopted SBP payment infrastructure, a significant increase from the reported 560,000 companies in 2022. Furthermore, a second group of 17 banks, along with several tens of thousands of firms and individuals, are expected to join the CBDC pilot later this year.

As the adoption of the digital ruble becomes mandatory, major Russian companies now face the challenge of integrating this new payment system into their operations. While concerns about the digital ruble persist, its widespread acceptance is anticipated to bring cost-saving and efficiency benefits for merchants.

Q&A: Addressing Additional Reader Concerns

Q: How will the digital ruble impact smaller businesses?
A: Smaller firms with an annual revenue below $55,000 will not be required to accept CBDC payments. This exemption aims to alleviate the burden for businesses with limited resources.

Q: What advantages does the Faster Payments System offer?
A: The Faster Payments System (SBP) enables instant fund transfers using mobile phone numbers, making payments more convenient and efficient.

Q: Will individuals be obligated to use the digital ruble?
A: The Central Bank initially insisted that using the digital ruble would be optional. However, as mandatory adoption measures are being considered, individuals may be required to use the digital ruble for certain transactions in the future.

Q: How will CBDC adoption impact the cost of payment services?
A: The Central Bank aims to reduce payment service costs for merchants, enhancing competition and improving the availability and quality of payment services.

🔎 Further Reading: 1. Russian economist believes US sanctions undermine the dollar and boost the digital ruble – source 2. Nigerian Central Bank creates new rule allowing crypto firms access to bank accounts – source 3. Russia edges toward mandatory CBDC pensions – source 4. Central Bank of Nigeria approves Africa Stablecoin Consortium pilot – source 5. Cryptocurrency news on Google News – source

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Note: The images used in this article represent the ongoing developments in the Russian cryptocurrency landscape. The original images can be found at the provided sources.

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