Putin Signs ‘CBDC, Digital Assets Payments’ Bill into Law

Putin has officially signed a groundbreaking bill into law in Russia, allowing firms in the country to utilize digital financial assets and Central Bank Digital Currencies (CBDCs) for international payments. This move is seen as an attempt to help domestic companies evade sanctions by utilizing digital tokens and CBDCs. The law, which was expedited through the State Duma and Federation Council, establishes a regulatory framework for conducting foreign trade transactions using digital assets as a means of payment. It also grants the Central Bank new regulatory powers over the payments sector and the authority to regulate transactions made using digital financial assets. However, the law requires firms to register all digital asset-related accounting on Russian systems, raising concerns among some experts. Furthermore, the absence of provisions for overseas digital financial assets may hinder non-Russian residents from engaging in business with Moscow using DFAs and CBDCs, unless reciprocal laws are introduced.