Russian President Vladimir Putin recently signed a law giving the country’s central bank the right to issue its own digital currency. The digital ruble will be able to be used for regular payments, but its accounts will be managed by the central bank itself rather than by private entities.
Vladimir Putin has signed a new law paving the way for the introduction of a digital ruble, Russia’s equivalent of a central bank-issued digital currency. The law gives the country’s central bank, the CBR, the right to issue its own digital currency.
The digital ruble, long discussed within the walls of the CBR, will be used for payments along with other methods, according to the new amendments to the Civil Code. The new law passed its third and final review on July 11 and is awaiting the president’s signature.
The CBR has been working on the digital ruble project since 2020, when the bank published its first analytical report on the subject. Since then, the report has been updated with feedback from relevant regulators, Russian banks and other financial market participants. In February 2022, a pilot project was launched in cooperation with a number of Russian banks.
It is reasonable to assume that the digital ruble will be seen by Russia as a tool to circumvent the much-discussed sanctions imposed on the country by the US and Europe. There is also talk that the system will allow better control over how the Russian government spends money on various social projects.
The introduction of central bank digital currencies around the world is a controversial topic. Whether it is a tool for freedom or slavery remains yet to be seen.
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On Wednesday, the Trump administration’s new steel tariffs entered into force.In response, European Commission President Ursula von der Leyen announces the imposition of tariffs amounting to €26 billion.
In February, Donald Trump announced the new tariffs on steel and aluminium, stressing that no exemptions would be granted. The 25% tariffs came into force on Wednesday morning and affect all countries, including former close US allies such as Australia, South Korea and the EU.
In retaliation, the EU is reimposing tariffs on US goods such as boats, motorcycles and bourbon. In total, the EU’s new tariffs are said to amount to €26 billion, although it is not clear over what time period this is calculated.
The measures are similar to those imposed in 2018 and 2020 in response to Trump’s steel tariffs during his first term, but this time they will be stronger. The EU announced the reintroduction of the tariffs on April 1, with further measures scheduled for April 13.
– The counter measures we take today are strong but proportionate, said European Commission President Ursula von der Leyen, according to Reuters.
Struggling battery manufacturer Northvolt has filed for bankruptcy with the Stockholm District Court, putting its 3,500 employees at risk of losing their jobs.
“This is the only available solution”, the company stated, as the collapse is being described as one of the largest industrial failures in Swedish history.
For a long time, Northvolt was hailed by politicians, business leaders and the establishment media as a pioneering effort to bring about the “green transition” that those in power believe is necessary. However, it was never a success and after billions in losses, the threat of bankruptcy that has long hung over the company has also become a reality.
The decision to file for bankruptcy on Wednesday morning was taken at an extraordinary board meeting on Tuesday evening, and officials say there were simply no longer any realistic alternatives.
“Despite having exhausted all available options to negotiate and implement a financial restructuring, including a Chapter 11 process in the US, and despite liquidity support from our lenders and key counterparties, the company was unable to secure the necessary financial conditions to continue in its current form”, they wrote in a press release.
– This is an incredibly difficult day for everyone at Northvolt.We set out to build something groundbreaking – to drive real change in the battery, electric vehicle and wider European industry and accelerate the transition to a green and sustainable future, commented interim chairman Tom Johnstone.
The bankruptcy affects Northvolt AB, Northvolt Ett AB, Northvolt Labs AB, Northvolt Revolt AB and Northvolt Systems AB.
“Dark day for all of us”
Today, the battery manufacturer has around 3,500 employees – most of them based in Skellefteå, Västerås and Stockholm. All of them are now at risk of unemployment and analysts say that Norhtvolt’s bankruptcy is one of the worst single industrial crashes in the country’s history.
A bankruptcy trustee will be appointed by a Swedish court to manage the sale of the business and its assets. The parent company’s liabilities are currently estimated at around SEK 58 billion (€5.3 billion).
–It is of course a heavy message and a very dark day for all of us who have worked hard every day and hoped that the company will get through this tough time, says Shaneika Jeffrey, Shaneika Jeffrey, vice chairman of the Unionen club at Northvolt Ett in Skellefteå.
It can further be noted that Northvolt Germany and Northvolt North America have not filed for bankruptcy.
Sweden is predicted to become the world’s first completely cashless country.Already today, it is impossible to pay with cash in many contexts.
The Riksbank sees major risks in this development and urges all Swedes to keep cash at home and use it so that shops and banks can clearly see that there is still a large demand.
Several analysts have noted that a “war on cash” is under way in Sweden and the entire Western world, with the aim of completely digitizing the economy and completely removing the possibility of paying with banknotes and coins.
Those businesses that make it impossible for their customers to pay with cash usually justify this with increased risk of robbery, risk of money laundering or that customers simply no longer want to pay with physical money. Many small businesses also point out that cash handling entails extra costs in the form of fees of various kinds, and that they therefore stop accepting cash.
However, critics have pointed out that the primary reason for the hostility to cash is that it is a relatively anonymous and privacy-friendly payment method and that it makes it difficult for banks, authorities and other actors to map and monitor in detail how Swedes use their money.
“Use cash”
Although the major banks dislike cash, the Governor of the Riksbank, Erik Thedéen, and the Deputy Governor, Aino Bunge, take a different view. In an opinion piece, they argue that Swedes need to use considerably more cash than they do today – and not just keep it lying around at home, but also use it to make everyday purchases.
They note that in troubled times like these, it is of the utmost importance to ensure that there is a robust payment system that cannot be disrupted or sabotaged – and that the ability to pay with cash is an important part of this.
“Keep small denominations of cash at home to cover a week’s worth of essential purchases.Use cash at regular intervals.Shops and banks need to see a demand for them to continue accepting them”,they write.
Want to introduce a “cash obligation”
The Riksbank governors also want Swedish politicians to introduce a “cash obligation” for the sale of important basic goods and to legislate on measures to protect the right to pay with cash.
“The Riksbank also believes that it must be possible to pay in cash for essential goods, such as food, fuel and medicines, in the future as well”, they state, adding that the major banks must take greater responsibility for offering cash deposits and exchange services to traders.
It also notes that there is currently only one player – Loomis – offering cash transportation to and from retailers, and that this too needs to change.
Cash is described as a necessary part of Swedish crisis preparedness. Photo: iStock/Connel_Design
More people need to get bank accounts
The press release notes that “cash remains an important payment option, not only for contingency reasons – but also for people who, for various reasons, are unable or unwilling to access digital services”.
It also stresses that it is up to citizens to make an effort to “strengthen their own payment preparedness and have both physical payment cards and cash available” and to use them.
It also encourages Swedes to have cards from at least two different issuers and wants more citizens than today to have access to payment accounts.
– Without a payment account, you cannot participate in society on the same terms. A common reason for banks to deny or close accounts is that they believe they cannot meet the legal requirements regarding money laundering and terrorist financing.These are serious social problems that must of course be counteracted.At the same time, we believe that more people should be given access to a payment account with basic functions, says Erik Thedéen.
President Donald Trump has signed an executive order establishing a federal Bitcoin reserve.The announcement is seen as an important marker in the cryptocurrency’s journey towards normalization and wider acceptance in society.
David Sacks, the White House Director of Cryptocurrencies and AI, explains that the reserve will be funded solely by Bitcoin seized in criminal investigations and civil forfeitures, which also means that taxpayers will not suffer financially.
The decree also establishes a national digital asset repository, managed by the Treasury Department, to dispose of other seized cryptocurrencies. The US government is currently estimated to hold around 200,000 Bitcoin.
“As a result of its scarcity and security, Bitcoin is often referred to as ‘digital gold’. Because there is a fixed supply of BTC, there is a strategic advantage to being among the first nations to create a strategic bitcoin reserve”, the presidential order reads.
“The United States Government currently holds a significant amount of BTC, but has not implemented a policy to maximize BTC’s strategic position as a unique store of value in the global financial system. Just as it is in our country’s interest to thoughtfully manage national ownership and control of any other resource, our Nation must harness, not limit, the power of digital assets for our prosperity”, it further declares.
