In a significant move, Russia has officially sanctioned the use of the digital ruble for various government payments, including pensions and salaries, beginning in late 2025. This decision was communicated through a statement by the Ministry of Finance, which outlined that this initiative will start as an optional process requiring the consent of recipients.
The framework for this digital currency initiative is set to evolve further, with the Federal Treasury expected to begin accepting state revenues in the digital ruble starting January 1, 2026. This marks a critical step in integrating the central bank digital currency (CBDC) into the workings of the federal budget.
According to the Ministry”s announcement, the Cabinet of Ministers has identified specific budget expenditures eligible for payment through the digital ruble. This encompasses social security transfers, public sector salaries, pensions, and additional government payments, including funding for capital projects and maintenance of public facilities.
Notably, the implementation of these payments will only occur at the request of recipients, a measure aimed at ensuring user choice in adopting this new payment method. Furthermore, only citizens will have the capacity to establish accounts for the digital ruble.
The amendments made to Russia”s Budget Code, which are set to take effect in early 2025, provide the necessary legal framework for the federal budget to be executed via digital ruble accounts held by the Federal Treasury. This institution will oversee the allocation and management of state funds.
In recent comments, Roman Artyukhin, head of the Federal Treasury, indicated that preliminary payments using the digital ruble had already commenced during 2025. This aligns with the government”s broader strategy to integrate the digital currency into its financial systems.
The collaboration between the Ministry of Finance and the Central Bank of Russia is pivotal as they work to facilitate the seamless integration of the digital ruble into government budget processes. Institutions and organizations will be able to leverage the CBDC for transferring funds in and out of budgets starting early 2026.
The digital ruble, which represents Russia”s third form of national currency alongside cash and bank money, has been undergoing a pilot phase since 2023, with plans for a comprehensive public rollout slated for September 1, 2026. In late November, the central bank clarified that person-to-person transactions using the digital ruble would incur no fees, while transactions for businesses would face a fee of 0.3%, and housing and utility payments would carry a fee of 0.2%. Additionally, banks are set to incorporate the digital ruble into existing banking apps to minimize costs for users.
