November 13, 2021

Russia to Launch Digital Ruble


Russia to Launch Digital Ruble
One ruble. Wikimedia Commons user Orange-kun

Russia is getting ready to test out the digital ruble, and it is not alone in launching a digital currency. But people who are not cryptocurrency enthusiasts want to know: What is a digital currency?

A digital version of a currency can be thought of as a third form of money: the first being cash, the second being non-cash (for instance, the money that gets direct-deposited into your bank account by your employer), and the third, for example, the digital ruble. The three types of currency are equivalent but probably difficult to understand. How is a digital ruble any different from a ruble direct-deposited by an employer?

The Russian Central Bank emphasizes that the digital ruble is not a cryptocurrency. Cryptocurrencies are decentralized (not issued by a government), and the identity of a holder is often impossible to determine unless the holder outs himself/herself. In contrast, the digital ruble will be held in electronic wallets "located" in the Central Bank.

Naturally, then, the digital ruble makes it easier for a government to track where all the money is going. Especially if people are not paying taxes on their under-the-table income (ahem). In many ways, digital currency is the opposite of cryptocurrency – though the idea and the digital infrastructure certainly came from that industry. One Russian blockchain and cryptocurrency expert says that the digital ruble will create the equivalent of the State Bank of the USSR. Another advantage of the digital ruble, according to Russian authorities, will be avoiding Western sanctions.

But this move is not limited to Russia. The United States and European Union are working on the digital dollar and euro, respectively, at the moment. China leads the pack, already using the digital yuan.

If you are thinking that cryptocurrencies are very prone to scams and hacks, and how is digital currency any different? – well, you're right. The fact is, the Russian government estimates it will need to spend R20-25 billion/$282.7 million (will those be cash or digital rubles?) to secure the system.

Many nations will have their digital currencies ready in the next 5-7 years. Russia had hoped to test the digital ruble in 2021, but with China already doing it, there is no hurry now. In fact, as Lenta.ru points out, watching other countries do it first can allow Russia to avoid all of their mistakes.

If you still do not quite understand how it will work... join the club. We guess we'll all find out soon.

You Might Also Like

Dirty Money
  • July 07, 2021

Dirty Money

“We are strengthening the protection of banknotes from the effects of harmful microorganisms.” – On July 5, Deputy Chairman of Russia’s Central Bank Mikhail Alekseev explained plans for the modernization of Russia’s bank notes
Coming Up Roses
  • March 19, 2021

Coming Up Roses

After one year of pandemic, Russia's economy is looking dandy while others are on the verge of collapse. Or so says new research.
Like this post? Get a weekly email digest + member-only deals

Some of Our Books

Dostoyevsky Bilingual

Dostoyevsky Bilingual

Bilingual series of short, lesser known, but highly significant works that show the traditional view of Dostoyevsky as a dour, intense, philosophical writer to be unnecessarily one-sided. 
Survival Russian

Survival Russian

Survival Russian is an intensely practical guide to conversational, colloquial and culture-rich Russian. It uses humor, current events and thematically-driven essays to deepen readers’ understanding of Russian language and culture. This enlarged Second Edition of Survival Russian includes over 90 essays and illuminates over 2000 invaluable Russian phrases and words.
A Taste of Chekhov

A Taste of Chekhov

This compact volume is an introduction to the works of Chekhov the master storyteller, via nine stories spanning the last twenty years of his life.
The Little Humpbacked Horse (bilingual)

The Little Humpbacked Horse (bilingual)

A beloved Russian classic about a resourceful Russian peasant, Vanya, and his miracle-working horse, who together undergo various trials, exploits and adventures at the whim of a laughable tsar, told in rich, narrative poetry.
The Latchkey Murders

The Latchkey Murders

Senior Lieutenant Pavel Matyushkin is back on the case in this prequel to the popular mystery Murder at the Dacha, in which a serial killer is on the loose in Khrushchev’s Moscow...
Faith & Humor: Notes from Muscovy

Faith & Humor: Notes from Muscovy

A book that dares to explore the humanity of priests and pilgrims, saints and sinners, Faith & Humor has been both a runaway bestseller in Russia and the focus of heated controversy – as often happens when a thoughtful writer takes on sacred cows. The stories, aphorisms, anecdotes, dialogues and adventures in this volume comprise an encyclopedia of modern Russian Orthodoxy, and thereby of Russian life.
The Pet Hawk of the House of Abbas

The Pet Hawk of the House of Abbas

This exciting new trilogy by a Russian author – who has been compared to Orhan Pamuk and Umberto Eco – vividly recreates a lost world, yet its passions and characters are entirely relevant to the present day. Full of mystery, memorable characters, and non-stop adventure, The Pet Hawk of the House of Abbas is a must read for lovers of historical fiction and international thrillers.  
Russian Rules

Russian Rules

From the shores of the White Sea to Moscow and the Northern Caucasus, Russian Rules is a high-speed thriller based on actual events, terrifying possibilities, and some really stupid decisions.
Moscow and Muscovites

Moscow and Muscovites

Vladimir Gilyarovsky's classic portrait of the Russian capital is one of Russians’ most beloved books. Yet it has never before been translated into English. Until now! It is a spectactular verbal pastiche: conversation, from gutter gibberish to the drawing room; oratory, from illiterates to aristocrats; prose, from boilerplate to Tolstoy; poetry, from earthy humor to Pushkin. 
Woe From Wit (bilingual)

Woe From Wit (bilingual)

One of the most famous works of Russian literature, the four-act comedy in verse Woe from Wit skewers staid, nineteenth century Russian society, and it positively teems with “winged phrases” that are essential colloquialisms for students of Russian and Russian culture.
Davai! The Russians and Their Vodka

Davai! The Russians and Their Vodka

In this comprehensive, quixotic and addictive book, Edwin Trommelen explores all facets of the Russian obsession with vodka. Peering chiefly through the lenses of history and literature, Trommelen offers up an appropriately complex, rich and bittersweet portrait, based on great respect for Russian culture.
Faith & Humor
December 01, 2011

Faith & Humor

A book that dares to explore the humanity of priests and pilgrims, saints and sinners, Faith & Humor has been both a runaway bestseller in Russia and the focus of heated controversy – as often happens when a thoughtful writer takes on sacred cows. The stories, aphorisms, anecdotes, dialogues and adventures in this volume comprise an encyclopedia of modern Russian Orthodoxy, and thereby of Russian life.

The Little Humpbacked Horse
November 03, 2014

The Little Humpbacked Horse

A beloved Russian classic about a resourceful Russian peasant, Vanya, and his miracle-working horse, who together undergo various trials, exploits and adventures at the whim of a laughable tsar, told in rich, narrative poetry.

Survival Russian
February 01, 2009

Survival Russian

Survival Russian is an intensely practical guide to conversational, colloquial and culture-rich Russian. It uses humor, current events and thematically-driven essays to deepen readers’ understanding of Russian language and culture. This enlarged Second Edition of Survival Russian includes over 90 essays and illuminates over 2000 invaluable Russian phrases and words.

Woe From Wit (bilingual)
June 20, 2017

Woe From Wit (bilingual)

One of the most famous works of Russian literature, the four-act comedy in verse Woe from Wit skewers staid, nineteenth century Russian society, and it positively teems with “winged phrases” that are essential colloquialisms for students of Russian and Russian culture.

At the Circus
January 01, 2013

At the Circus

This wonderful novella by Alexander Kuprin tells the story of the wrestler Arbuzov and his battle against a renowned American wrestler. Rich in detail and characterization, At the Circus brims with excitement and life. You can smell the sawdust in the big top, see the vivid and colorful characters, sense the tension build as Arbuzov readies to face off against the American.

The Latchkey Murders
July 01, 2015

The Latchkey Murders

Senior Lieutenant Pavel Matyushkin is back on the case in this prequel to the popular mystery Murder at the Dacha, in which a serial killer is on the loose in Khrushchev’s Moscow...

Russian Rules
November 16, 2011

Russian Rules

From the shores of the White Sea to Moscow and the Northern Caucasus, Russian Rules is a high-speed thriller based on actual events, terrifying possibilities, and some really stupid decisions.

Jews in Service to the Tsar
October 09, 2011

Jews in Service to the Tsar

Benjamin Disraeli advised, “Read no history: nothing but biography, for that is life without theory.” With Jews in Service to the Tsar, Lev Berdnikov offers us 28 biographies spanning five centuries of Russian Jewish history, and each portrait opens a new window onto the history of Eastern Europe’s Jews, illuminating dark corners and challenging widely-held conceptions about the role of Jews in Russian history.

About Us

Russian Life is a publication of a 30-year-young, award-winning publishing house that creates a bimonthly magazine, books, maps, and other products for Russophiles the world over.

Latest Posts

Our Contacts

Russian Life
73 Main Street, Suite 402
Montpelier VT 05602

802-223-4955