Russian tax authorities are set to commence the collection of taxes in digital rubles starting from 2025, as per recent tax code amendments signed into law by President Vladimir Putin. The amendments also grant banks the authority to block transactions involving “suspicious-looking” Central Bank Digital Currency (CBDC) transactions.
According to media outlet Klerk, the Ministry of Finance in Russia aims to transition to collecting taxes in digital rubles by 2025 and has expressed intentions to initiate payments such as pensions and other social benefits in digital rubles.
Furthermore, the ministry has previously announced plans to make unspecified welfare and subsidy payments using Central Bank Digital Currency coins within the current year. This move reflects Russia’s ongoing efforts to integrate digital rubles into various aspects of its financial system.
As part of the expanding pilot program, Russian government entities have committed to becoming more proactive with the use of digital rubles in 2024. The Ministry of Finance has indicated its intention to explore the possibility of settling bills amounting to over $155 million using digital rubles.
However, the ministry has not provided additional details about its plans, leaving room for speculation about potential features such as “marked” or color-coded Central Bank Digital Currency (CBDC) tokens.
Tax authorities are expected to initiate pilot projects for CBDC tax payments within the year. These developments reflect Russia’s ongoing efforts to further integrate digital rubles into various facets of its financial infrastructure.
Taxes and More: Russia Building CBDC Infrastructure
According to RBC, banks in Russia will be granted the authority to block Central Bank Digital Currency (CBDC) transactions. The anti-money laundering regulator, Rosfinmonitoring, is reportedly collaborating with the Central Bank to develop legislation that will empower banks to intervene and halt digital ruble transactions if they suspect them of being conducted for criminal purposes. This move underscores the government’s commitment to ensuring the security and integrity of digital ruble transactions and preventing their misuse for illicit activities.
German Neglyad, the Deputy Director of Rosfinmonitoring, emphasized that for individuals, anti-money laundering procedures related to the digital ruble should remain consistent with those applied to other forms of the ruble. He stated, “Nothing should change for individuals for anti-money laundering procedures. Our basic position is that all anti-money laundering mechanisms that exist for other forms of the ruble will also work for the digital ruble.”
In the previous year, the regulator announced that it was closely monitoring around 25,000 Russian cryptocurrency holders due to suspicions of money laundering. Authorities at Rosfinmonitoring claimed to have developed a tool enabling them to track and de-anonymize cryptocurrency transactions on popular blockchain protocols. This underscores the government’s commitment to applying existing anti-money laundering measures to the digital ruble and ensuring a consistent regulatory framework across various forms of currency.
