Russian Courts to Collect Debts in Digital Rubles from January 1
Russia’s Federal Bailiff Service has announced that it will start collecting debts in digital rubles from January 1, following changes to the federal law, reported TASS news agency.
The changes, introduced by the federal law on July 24, 2023, regulate the procedure of forced collection in digital rubles of the debtor’s digital assets, and the relevant provisions of the law came into force on January 1, 2025.
According to the law, debts can be collected in digital rubles if the debtor does not have sufficient funds in rubles, foreign currency, or precious metals on their accounts or deposits. The process will be handled through so-called digital wallets.
Digital wallets, unlike regular bank accounts, do not have the principle of preserving funds in the minimum amount that cannot be seized, TASS reported. Digital rubles are stored on digital ruble accounts, which are opened on the platform of the Russian Bank, and can be accessed through mobile banking applications and internet banking.
Earlier, on November 29, 2024, Russian President Vladimir Putin signed a law regulating the taxation of digital currencies, treating digital currency as property. This also applies to currencies used in international trade under the experimental legal framework for digital innovations, and the mining and sale of digital currency are not subject to value-added tax.
The digital ruble seems to be gaining popularity, with every Russian citizen expected to use digital rubles by the end of the year. Putin recently announced that the digital ruble will be used for federal budget settlements from 2025 and its widespread use is planned for July 1, 2025.
The new form of the ruble will not only benefit the population but also the state, according to Russian media. The digital ruble will initially be used for budget settlements, and experts believe it will contribute to speeding up, simplifying, and securing settlements. The development of digital payments and equal access to the digital ruble for all economic entities will lead to a reduction in the costs of payment services and money transfers, as well as increased competition among financial organizations.
Boris Slavin, a professor of economics and information technology at the Financial University of the Russian Federation, told the Argumenty i Fakty newspaper that the use of digital rubles in budget settlements will also help in the fight against corruption and the misuse of budget funds, as digital ruble transactions can be easily traced and monitored.