The new form of Russia’s fiat, the digital ruble, will make spending more efficient for both government and family budgets, according to a high-ranking lawmaker. Anatoly Aksakov, who was involved in the recent adoption of the new digital ruble legislation, highlighted some of the advantages of programmable central bank money as he sees them.
Central Bank of Russia to Cap Digital Ruble Payments at CBDC Launch, Aksakov Expects
Russia’s recently adopted digital ruble law allows the Bank of Russia to limit the use of its central bank digital currency (CBDC) and, according to the head of the parliamentary Financial Market Committee, Anatoly Aksakov, the monetary authority will set some restrictions after its initial introduction.
The legislation was passed by the State Duma, the lower house of Russian parliament, last week. On Wednesday, the Federation Council, the upper house of the Federal Assembly of Russia, approved the bill in turn. It will enter into force once it’s signed by Russian President Vladimir Putin.
In an interview with the Parlamentskaya Gazeta newspaper, Aksakov pointed out that the digital incarnation of the Russian ruble will allow government authorities and the currency’s users to control how their money is being spent by others through smart contracts.
“For example, you give money to a child who goes to school, stipulating that the money can only be spent on breakfast, books or textbooks, and nothing else. Accordingly, no matter how great their desire is to use it for other purposes, it will be impossible to do so,” Aksakov explained.
“That is, the intended use of the money allocated by the parents to their child will be prescribed,” the lawmaker added. Which means no harmful sweets for pupils with parents’ digital rubles, the official publication of the Russian parliament elaborated.
The same principle will apply to the allocation of state money for the implementation of specific programs, Anatoly Aksakov emphasized. He believes this will increase the efficiency of the use of budgetary funds. Businesses can also take advantage of the programmable CBDC in their transactions, the lawmaker is convinced.
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