What To Know:
- Russia has begun using the digital ruble for budget transfers and payments to federal institutions as part of a phased rollout ahead of a wider launch in September.
- Large banks and firms must support digital ruble transactions by September 2026, while smaller institutions will follow through 2027 and 2028, with exemptions for very small retailers.
- Economists say wider digital ruble use could reduce reliance on card networks like MIR, as zero-fee government payments and future salary options encourage adoption.
Russia has started moving the digital ruble from pilot testing into everyday state use, to channelize public money flowing through the country’s financial system. According to state-owned news agency RIA Novosti, the Central Bank of the Russian Federation has started using the digital ruble for budget-related operations and payments to federal institutions as part of preparations for a global rollout scheduled for September.
Russia Moves Forward With Digital Ruble Integration in Banking Systems
Since the start of the year, government officials have been able to transfer funds to the federal budget using the digital tender. Payments between state institutions are also being processed in digital rubles, which is the first optimal use of the new form of national money beyond controlled experiments. Russian officials call the process ‘a phased expansion’ rather than a sudden launch, with each stage dedicated towards bringing banks, businesses, and public institutions into the system at a measured pace.
The digital ruble was formally approved two years ago, with a legal guideline that determined deadlines for adoption across the financial sector. Under those rules, the country’s largest banks and major retail and institutional clients are expected to support digital ruble transactions by September 1, 2026. This rule applies to institutions holding universal banking licenses and firms with annual revenues more than 30 million rubles.
Smaller players will follow later. Banks and retailers with annual revenue below that threshold will be required to comply starting September 1, 2027. Very small businesses, including outlets with turnover under 5 million rubles, are exempt from mandatory acceptance of the digital currency. The staggered timeline is a consequence of issues about technical readiness and the cost of upgrading systems across Russia’s vast and unevenly digitized economy.
The rollout goes beyond just payments. Russian legislation also requires a universal QR code to standardize non-cash payments nationwide. The code is modeled after a system developed by the National Payment Card System, the operator of the MIR card network. Officials believe the move is to reduce confusion at points of sale, where many QR systems are currently vying. All banks must accommodate the universal QR code into their infrastructure by September 1, 2026, though early adoption is voluntary.
The central bank believes there will be a need for the QR standard alongside the digital ruble, particularly where card payments and mobile money flows already rule retail. To encourage early adoption the Bank of Russia has waived the costs of digital ruble transactions that go along with taxes, fees and other government payments. The zero-fee policy entered into force last week and applies to both individuals and businesses alike. For businesses that regularly use the country’s payments to the state, the authorities see it as a practical incentive, not a symbolic one.
Economists say the digital ruble could significantly reshape Russia’s domestic payment landscape. Natalia Milchakova, a senior analyst at Freedom Finance Global, told local outlet Deita that the new currency poses a direct challenge to established payment systems, including the MIR card network. She estimated that card-based payments could decline by 7 percent to 9 percent annually as digital ruble usage grows.
MIR’s dominance expanded rapidly after Visa and Mastercard exited the Russian market in 2022. At the time, MIR accounted for less than 10 percent of card transactions. Its share later rose to around 80 percent. Even if foreign card networks were to return, analysts believe their influence would remain limited.
Data from the National Payment Card System underscore the scale of the existing infrastructure. Over the past decade, transaction volumes have surpassed 100 trillion rubles, with 86 billion transactions processed. More than 475 million cards have been issued, with card issuance rising sharply over the past year.
Beyond payments, lawmakers have hinted at broader use cases. Anatoly Aksakov, head of the State Duma’s financial market committee, said Russians could begin receiving salaries in digital rubles starting September 1, 2026. Participation would remain voluntary, though banks and employers would be required to offer the option in later stages.
The digital ruble push comes as the central bank also outlines its stance on private cryptocurrencies. Regulators recently proposed a framework to legalize and regulate crypto trading by the end of 2025, and also warning investors about volatility and sanctions risks. Under the proposal, cryptos and stablecoins would be treated as financial instruments rather than legal currency.
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