The Russian government is going to use CBDC for taxes and benefits.
The central bank wants to lift “all” restrictions on the use of the digital ruble. The regulator says its CBDC will not replace cash or conventional forms of banking.
The Russian government intends to use the digital ruble to make welfare payments, and wants citizens to use CBDC to pay their taxes.
According to Finam, the central bank and the Ministry of Finance are “exploring the possibility of using the digital ruble for government payments” and they want to find ways to allow individuals and corporations to pay their taxes in CBCC tokens.
Ala Bakina, Head of the Bank's National Payment System Division, said:
“The questions [of making welfare and benefits payments, as well as CBDC tax collection] go ahead. We, together with the Ministry of Finance and the Federal Treasury, are looking at ways to effectively use the digital ruble in this regard.
Is the Russian government hoping to pay benefits, collect taxes using CBDC?
China's digital yuan pilot appears to have had a major impact on Moscow's digital ruble rollout plans.
The Chinese project has already reached the stage where citizens in the pilot zone can pay taxes using digital yuan, and CBCC benefit payments are also planned.
Russian government and central bank officials seem to want to do the same.
In some areas of China, civil servants and other government employees are receiving part or all of their salaries in e-CNY tokens.
Meanwhile, Bakina also told attendees at a fintech-themed webinar that Russians will be free to use their CBDC tokens however they want.
The official of the bank said that the bank does not plan to “impose any restrictions” on the use of the digital ruble.
She said:
“Restrictions on digital ruble spending – such as allowing coins to be used only on a selection of products – go against the logic of the digital ruble. [The CBDC] It should be everywhere and convenient, so there will be no restrictions; It makes no sense to create anything.
Central Bank of Russia: Digital ruble will not replace cash.
At Interfax, Bakina also said that the token is not intended to stop cash flow in Russia.
She explained:
“I don't think we will abandon non-cash payments. In fact, the share of non-cash transactions has already exceeded 80%.
Bakina admitted that there is a “category” of Russian people who are used to using cash.
Some merchants “only accept” cash as a form of payment, she added.
Bakina said:
“I believe we should have all kinds of options. [to make payments]. We need different tools including cash, cards, ordinary bank accounts, digital. [ruble] accounts, mobile applications and payment services. This helps [the economy]Because it encourages competition between different forms of payment.
The central bank still has work to do to convince more Russians that the digital ruble project is worthwhile.
Several surveys indicate that many citizens are wary of the coin or don't understand how it works — or if it's even beneficial to them.
Commercial banks have also given their opinion on the issue.
Earlier this month, the central bank was boosted by news that Sberbank, the largest bank in Russia, would join the next phase of the digital RUB pilot.
