The law on the digital ruble, signed by Vladimir Putin, comes into force on August 1.
The digital ruble will become the third form of national currency, along with cash (paper money) and non-cash (bank cards). From a technical standpoint, the digital ruble is a computer code that is stored in the Central Bank and the monetary authority will issue this code.
The public was quick to notice its resemblance to cryptocurrencies. However, as economists emphasize, there is one crucial difference: the digital ruble is issued and backed by the state, while cryptocurrencies are created in the process of mining and are propped up only by crowd psychology.
The digital ruble is considered to be beneficial to society and the state for numerous reasons.
First off, the digital currency will help combat corruption and tax evasion by making transactions even more transparent.
Another point that is utterly crucial here is that the state can earmark the precise purpose of a monetary allocation to prevent any possible cases of money laundering, embezzlement or misappropriation of public funds.
The same will be also probably hold true for family finances. Thanks to this innovation, parents can monitor how their children are going to spend digital pocket money.