The Ruble Goes Digital

On Sept. 1, Russia officially introduced the digital ruble. All systemically important banks in the country, which account for more than 80 percent of the market, as well as trading companies with annual revenue exceeding 120 million rubles ($1.4 million), must now allow for the payment of goods and services using the digital form of the national currency.

The differences between this new currency and cashless systems are a matter of obligation and infrastructure. Digital rubles will be stored in special accounts opened directly on the Central Bank’s platform; commercial banks are merely conduits for transactions. The Central Bank, not the individual bank, will guarantee its security…