Russia to Begin Using Digital Ruble for Budget Payments from 2025, Starting with Social Benefits and Capital Projects

MOSCOW – The Bank of Russia and the government are set to finalize a list of federal budget areas for digital ruble implementation by August 2025. This was confirmed by Sergei Romanov, Director of the Budget Methodology Department at the Ministry of Finance, who stated that the initial phase will focus on key expenditure items like social payments and capital construction.

“In 2025, the use of the digital ruble in federal budget execution will be limited to certain expenditure items approved jointly by the government and the Bank of Russia,” Romanov announced at the Federation Council. This move is part of a broader strategy to enhance transparency and efficiency in public finance.

What is the Digital Ruble?

The digital ruble is the third form of Russia’s national currency, alongside cash and traditional non-cash money. Issued by the Bank of Russia, it’s a special electronic token with the same value as other rubles (1 digital ruble = 1 ruble). It’s designed to be a state-controlled alternative to traditional payment systems, providing a new layer of security and traceability.

Key Implementation Milestones:

• October 1, 2025: The digital ruble will be used for payments in a limited number of approved federal budget categories.
• January 1, 2026: The use of the digital ruble will be expanded to include all federal budget expenditures without restriction.
• 2027: The framework will be broadened to include state extra-budgetary funds and regional budgets.

Benefits of the Digital Ruble:

• Accessibility: It aims to improve financial inclusion for people in remote or hard-to-reach areas.
• Efficiency: Transactions can be made securely through a digital wallet, accessible via a mobile app.
• Transparency: It allows for greater traceability of public funds, making transactions more transparent and reducing misuse.
• Alternative to Cryptocurrencies: It provides a secure, state-backed digital currency, which can be seen as an alternative to decentralized cryptocurrencies.

The legislation for this new financial framework was recently adopted by the State Duma. The Bank of Russia will manage the platform, ensuring transaction details and balances remain private, similar to a regular bank account.

News by Svetlana, Moscow Correspondent.