Russia Expands Digital Ruble Use Across Banks and Budget System

TLDR

• Russia has started large-scale use of the digital ruble in its budget system and banking sector.
• Government institutions are already using the digital ruble for transfers and payments.
• Large banks and institutional clients must support digital ruble transactions by September 1, 2026.
• Retail companies with over ₽30 million in revenue must comply by September 1, 2027.
• Smaller businesses will follow a year later while very small retailers are exempt.

Russia has started implementing its digital ruble across the national budget system and banking sector, expanding its usage considerably this year, and according to RIA Novosti, the move prepares the digital currency for a full rollout by September 2024, aligning with previously set national deadlines.

Digital Ruble Used for Government Transactions

Russia’s central bank-backed digital ruble has been in use for state-related payments since early 2024, according to official sources. Government agencies have begun using the currency for budget transfers and institutional payments, marking a large-scale transition. The Central Bank confirmed that this usage will continue to grow under the phased national rollout plan.

The law passed in 2023 set deadlines for integrating the digital ruble into government and business processes. By September 1, 2026, large banks and their institutional clients must offer digital ruble services. Banks and enterprises are adjusting their systems to support transactions ahead of the mandatory compliance dates.

The digital ruble will serve as a third form of the national currency alongside cash and non-cash rubles. The government aims to ensure seamless usage for taxes, fees, and budget allocations. The central bank will oversee system updates and ensure integration continues as scheduled.

Banks, Businesses Prepare for Full Integration

Universal license banks and companies earning over ₽30 million annually must enable digital ruble transactions by September 1, 2027. The law requires these institutions to process payments in a digital format as part of the national strategy. One year later, smaller entities will be required to comply.

Retailers with yearly revenue below ₽30 million must adopt the system starting September 1, 2028, according to official guidelines. The law exempts businesses making under ₽5 million annually from digital ruble compliance requirements. These firms may continue using conventional payment systems without penalty.

All banks must also support a universal QR code format by September 1, 2026, for non-card transactions. The system, developed by the National Payment Card System, aims to reduce confusion at points of sale. Banks may adopt the QR system earlier, depending on their readiness.

Digital Ruble Challenges Domestic Card Market

Freedom Finance Global analyst Natalia Milchakova stated the digital ruble may reduce demand for the MIR card by 7% to 9% yearly. “The digital ruble is a serious competitor to existing domestic payment systems,” she told Deita. MIR’s market share has surged since Visa and Mastercard exited Russia.

At the start of 2022, MIR accounted for just under 10% of transactions, but its share has grown rapidly since. Now at nearly 80%, MIR faces competition from the state-backed digital currency. Milchakova expects digital options to dominate regardless of foreign network returns.

NPCS head Dmitry Dubynin reported that MIR cards issued have now exceeded 475 million units. Transaction volume surpassed 100 trillion rubles, with 86 billion transactions processed over ten years. Card issuance rose 17% over the past year, showing growing adoption before digital ruble expansion.

The central bank recently introduced zero fees for payments made using digital rubles for taxes and government-related services. These changes became effective last week and apply to individuals and companies. Authorities believe this measure will encourage digital ruble use in official transactions.

Russia also plans to regulate cryptocurrency trading by the end of 2025 through a new legal framework. The central bank clarified that crypto assets will be treated as financial instruments, not legal tender. Domestic payments using cryptocurrencies or stablecoins will remain prohibited.

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