Russia is moving closer to using the digital rouble for welfare payments, with the government discussing its introduction despite concerns over adoption hurdles.Reports suggest the Central Bank, the Federal Treasury, and the Ministry of Finance are exploring ways to distribute social benefits using the country's central bank digital currency.

The Ministry of Finance believes the digital rouble could improve efficiency and prevent fraud by ensuring funds are spent as intended. The Central Bank, however, primarily sees the CBDC as a payment tool and is continuing pilot tests with major banks. Reports indicate that a trial for social benefits could begin as early as August, alongside other budgetary operations.

Officials have also hinted at the possibility of tracking digital rouble transactions to control spending, a move reminiscent of the Soviet-era financial system. While experts acknowledge the potential benefits, they warn that widespread adoption may take time, given infrastructure gaps in rural areas and resistance to cashless payments.

For more information on these topics, visit diplomacy.edu.