Russia Expands Use of Digital Ruble for Social Payments

After successful trials with scholarships and fines, Russia’s digital ruble is now being tested for targeted subsidies to families with young schoolchildren.

Russia is expanding the use of its new digital currency, the digital ruble, following successful pilot programs for issuing scholarships and paying fines. The next phase will involve testing the system for social payments to parents of elementary school students. The announcement was made by Olga Skorobogatova, First Deputy Governor of the Bank of Russia, during the St. Petersburg International Economic Forum.

Eligible families will receive an amount equal to the cost of school meals in digital rubles. Authorities noted that participants in the test will be required to open a separate bank account. The subsidy can only be spent in grocery stores and only on pre-approved categories of goods.

If the pilot proves successful and scales nationwide, digital ruble-based payments could be made with no transfer or transaction fees.

Although the banking infrastructure is already prepared for a full rollout, legislation is still needed. According to statements from the Russian State Duma, the use of the digital ruble will remain entirely voluntary. There are currently no plans to mandate its use for wages or broader welfare payments.