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Russia Gov’t Wants to Use Its CBDC for Tax Collection, Paying Benefits
Russia’s government intends to use the digital ruble to make welfare payments, and wants citizens to use the CBDC to pay their taxes.
Per Finam, the Central Bank and the Ministry of Finance say they are “exploring the possibility of using the digital ruble for government payments,” and want to find ways to allow individuals and corporations to pay their taxes in CBDC tokens.
The head of the bank’s National Payment department, Alla Bakina, stated:
Russian Government Hoping to Pay Benefits, Collect Taxes Using CBDC?
The Chinese project has already expanded to the point whereby citizens in parts of the pilot zone can pay taxes using the digital yuan, with CBDC benefits payments also planned.
Russian government and Central Bank officials appear keen to do likewise.
In some parts of China, civil servants and other government employees are receiving part or the entirety of their salaries in e-CNY tokens.
Meanwhile, Bakina also told attendees at a fintech-themed webinar that Russians would be free to spend their CBDC tokens however they please.
The bank official said the bank “does not plan” to “impose any restrictions” on the use of the digital ruble.
She said:
Russian Central Bank: Digital Ruble Won’t Replace Cash
Per Interfax, Bakina also claimed that the token was not intended as a means of phasing out cash in Russia.
She explained:
She added that some merchants “only accept” cash as a form of payment can be used.
Bakina concluded:
The Central Bank still has work to do if it is to convince many Russians that its digital ruble project is worthwhile.
Multiple surveys have indicated that many citizens are wary of the coin, or do not understand how it works – or if it will benefit them.
Commercial banks have also expressed their own reservations on the matter.
Earlier this month, the Central Bank was boosted by the news that Sberbank, the largest bank in Russia, will join the next stage of the digital RUB pilot.