Key Takeaways:
- The bill’s provisions for debt management, non-resident services, and the function of the central bank are all subject to revision.
- Lawmakers want to prohibit the Bank of Russia from participating in company funding and give it complete control over the digital ruble platform.
Legislators have proposed significant changes to the bill to alter the original text concerning debt operations, services for non-residents, and the function of the central bank as the digital ruble initiative moves through Russian parliamentary hearings.
On May 22, the state-run news agency Interfax published a report on the set of recommendations created by the State Duma’s Committee on the Financial Market before the bill’s second reading regarding the digital ruble. The State Duma is the lower chamber of the Russian Federal Assembly.
Lawmakers want to prohibit the Bank of Russia, the nation’s central bank, from participating in company funding and giving it complete control over the digital ruble platform. The revisions would also require the central bank to protect the confidential information of its clients who work for the Federal Security Service.
The updated draft also suggests facilitating non-resident access to the Central Bank Digital Currency (CBDC) platform through foreign banks that have been granted permission to use it. Additionally, it states that there should be no restrictions on how non-residents can use the site.
If the debtors have enough digital rubles on hand, the enforcement agency may currently withdraw the debtors’ money without restriction. However, the State Duma’s legal division has already objected to this idea because it is against the law to extract debtors’ money above the minimum salary, or around $195 per month.
The first reading of Bill 270838-8 was completed in March. It was initially planned to pass legislation by April to begin the CBDC trial. However, the continuous debate over the bill has caused a delay in the deadline. By the end of July, the law should move on to future readings, according to Interfax.
In the meantime, Belarus, a neighboring country, is putting up a trial program for its own CBDC. According to the head of the national bank, the nation will decide by the end of the year whether to issue a digital version of the Belarussian ruble.
According to a recent announcement by the Hong Kong Securities and Futures Commission (SFC), authorized platforms will soon be authorized to serve regular investors. Owners of trading platforms for virtual assets are encouraged to apply for a license, the SFC stated in a statement on May 23.
