The Digital Ruble in Russia and Worldwide

In the era of the fourth industrial revolution and changes in the international financial system, there has been a growing interest in non-fiat currencies. In order to strengthen sovereignty and effectively manage monetary policy, many countries are actively exploring the use of digital currencies. At present, 134 countries, representing 98% of the global GDP, are developing central bank digital currencies (CBDCs). However, digitalization faces new challenges. Economic sanctions pose obstacles for businesses, particularly for Russia. To overcome these challenges, it is essential to create tools that can help circumvent restrictions. A possible solution could be the development of a stablecoin backed by the Russian ruble.

The purpose of this study is to examine international progress in digitalizing the economy and using digital technologies to facilitate cross-border payments. Additionally, it aims to develop recommendations for applying this experience to Russian realities. The study also aims to explore solutions for restoring ties with international markets amidst sanctions pressure.

The research methods include comparative analysis, statistics, mathematics, generalization, concretization, systematization, and deduction.

The research results include the concept of the CBDC and its main functions and benefits. This is supported by examples from other countries’ practices based on data from the Atlantic Council. Additionally, the current status of Russia’s digital ruble development, its integration with international financial systems, and potential obstacles are investigated. Furthermore, the phenomenon of stablecoins, their operations, and their impact on international commerce and financial transactions are analyzed. Successful cases of stablecoin use in various countries and their potential integration with the Russian economy are also discussed. It has been concluded that the introduction of the digital ruble represents a significant step for the Russian financial system. This innovation makes services more accessible, reduces transfer fees, enhances control and transparency, and fosters technological advancement. To ensure the successful implementation of the digital ruble, it will be necessary to develop appropriate infrastructure, strengthen cybersecurity measures, and improve regulatory frameworks.

1. Makridis C. The rise of central bank digital currencies: Exploring adoption determinants and early macroeconomic and well-being impacts. 2024. URL: https://bitcoinke.io/wp-content/uploads/2024/08/The-Rise-of-CBDs-Exploring-Adoption-Determinants-and-MacroEconomic-and-Well-Being-Impacts.pdf (accessed on 05.10.2024).

2. Fabian O., Emeka O., Okeke Chinenye J. E-naira digital currency and financial performance of listed deposit money banks in Nigeria. International Journal of Trend in Scientific Research and Development. 2022;6(2):222–229.

3. Sakharov D. M. Central bank digital currencies: Key aspects and impact on the financial system. Finance: Theory and Practice. 2021;25(5):133–149. DOI: 10.26794/2587–5671–2021–25–5–133–149

4. Larina O. I., Akimov O. M. Digital money at the present stage: Key risks and development direction. Finance: Theory and Practice. 2020;24(4):18–30. DOI: 10.26794/2587–5671–2020–24–4–18–30

5. Zhil’tsova Yu.V., Zinchenko E. A. The digital ruble as a third form of national currency. Bukhgalterskii uchet v byudzhetnykh i nekommercheskikh organizatsiyakh = Accounting in Budgetary and Non-Profit Organizations. 2024;(5):2–14. (In Russ.).

6. Drobyshevsky S., Sinelnikova-Muryleva E. Rules and consequences of the digital ruble adoption. Monitoring of Russia’s Economic Outlook. Trends and Challenges of Socio-Economic Development. 2023;(6):3–7. DOI: 10.2139/ssrn.4531390

7. Sinelnikova-Muryleva E. V. Digital ruble: Risks and benefits. Ekonomicheskoe razvitie Rossii = Russian Economic Development. 2021;28(5):36–39. (In Russ.).

8. Kuznetsova V. V., Larina O. I. Central banks digital currencies issuance: Development directions and key risks. Finance: Theory and Practice. 2023;27(6):6–16. DOI: 10.26794/2587–5671–2023–27–6–6–16

9. Di Maggio M., Ghosh P., Ghosh S. K., Wu A. Impact of retail CBDC on digital payments, and bank deposits: Evidence from India. NBER Working Paper. 2024;(32457). DOI: 10.3386/w32457

10. Gabov A. V. A digital ruble of the central bank as a civil rights object. Aktual’nye problemy rossiiskogo prava = Actual Problems of Russian Law. 2021;16(4):55–65. (In Russ.). DOI: 10.17803/1994–1471.2021.125.4.055–065

11. Turbanov A. V. A digital ruble as a new form of money. Aktual’nye problemy rossiiskogo prava = Actual Problems of Russian Law. 2022;17(5):73–90. (In Russ.). DOI: 10.17803/1994–1471.2022.138.5.073–090

12. Andrianova N. G. Financial and legal specifics of the digital ruble as a central bank digital currency type. Bankovskoe pravo = Banking Law. 2024;(3):24–32. (In Russ.).

13. Sannikova L. V., Kharitonova Yu. S. Digital assets: Legal analysis. Moscow: 4 Print; 2020. 304 p. (In Russ.).

14. Mikhailov A. Yu. Сryptocurrency market development: Hurst method. Finance: Theory and Practice. 2020;24(3):81–91. DOI: 10.26794/2587–5671–2020–24–3–81–91

15. Liao G., Hadeed T., Zeng Z. Beyond speculation: Payment stablecoins for real-time gross settlements. 2023. DOI: 10.2139/ssrn.4476859

16. Kochergin D. A. Economic nature and classification of stablecoins. Finance: Theory and Practice. 2020;24(6):140–160. DOI: 10.26794/2587–5671–2020–24–6–140–160

17. Yadav Y., Fernandez da Ponte J., Davine Kim A. Payments and the evolution of stablecoins and CBDCs in the global economy. Vanderbilt Law Research Paper. 2023;(19). DOI: 10.2139/ssrn.4425922

18. Li X. Stablecoin regulation in Hong Kong: Recent developments and critical evaluations. 2024. DOI: 10.2139/ssrn.487028

19. Ozili P. K. Nigeria cNGN stablecoin: Everything you need to know about cNGN and eNaira CBDC. Munich Personal RePEc Archive. MPRA Paper. 2024;(120801). URL: https://mpra.ub.uni-muenchen.de/120801/1/MPRA_paper_120801.pdf (accesses on 04.10.2024)

20. Didenko A. N., Zetzsche D. A., Arner D. W., Buckley R. P. After Libra, Digital Yuan and COVID‑19: Central bank digital currencies and the new world of money and payment systems. UNSW Law Research Paper. 2020;(59). DOI: 10.2139/ssrn.3622311