Russia will begin rolling out its digital ruble on Tuesday, allowing major domestic banks and retailers to process payments and transfers using the new form of the national currency.
Individuals will be able to open digital ruble accounts through participating banks’ mobile applications and transfer up to 300,000 rubles (nearly $3,500) per month from their conventional bank accounts into digital rubles. Businesses will not be subject to the same limit.
The digital ruble will serve as Russia’s third form of national currency, alongside cash and money held in bank accounts, and will have the same value as other forms of the ruble.
Unlike cryptocurrencies, the digital ruble is issued and backed by the Russian Central Bank.
The central bank is also working to integrate the digital ruble with digital currency systems operated by other central banks in an effort to reduce dependence on intermediaries, lower transaction costs and mitigate sanctions-related risks in international payments.
The EU banned transactions involving the digital ruble as part of its 20th sanctions package adopted on April 23.