Banks taking part in the digital ruble pilot will begin testing transactions with actual clients in mid-August, according to a top executive of one of the financial institutions. The trials are set to start weeks after Russia adopted dedicated legislation for the introduction of its new digital currency.
Russian Banks to Process First Digital Ruble Payments Between Customers Next Month
A group of Russian banks involved in the pilot phase of the digital ruble project will launch trials with transactions between real users in mid-August, the Chairman of the Board of Ingosstrakh Bank, Stanislav Danysh, announced, quoted by RBC Crypto.
As part of the tests, transfers of digital rubles between the participating banks, retail and corporate clients, as well as digital ruble payments for goods and services between companies will be carried out, Danysh detailed.
The executive highlighted that due to the importance of the project, initial testing will be conducted on a limited scale in terms of number of participants which will include employees and partners of the bank, he added.
The digital ruble is a central bank digital currency (CBDC) issued by the Central Bank of Russia (CBR) which is the sole operator of its platform. Transfers of digital rubles will be free of charge for private individuals while businesses will pay a commission of 0.3%.
This month, CBR Governor Elvira Nabiullina indicated that the large-scale introduction of the new form of the national fiat is to be expected from the beginning of 2025. The trials, which will start with basic operations this year, will expand to include contactless payments using NFC technology in 2024.
Earlier in July, both houses of Russia’s Federal Assembly, the State Duma and the Federation Council, passed legislation designed to facilitate the implementation of the CBDC. Russian President Vladimir Putin signed the bill into law this week.
The legislation clears the way for digital ruble payments in the Russian Federation while the use of other digital financial assets for payments was effectively prohibited with another law approved by the head of state in mid-July.
First Deputy Chairman of the Bank of Russia, Olga Skorobogatova, pointed out that the digital ruble is not a cryptocurrency or a stablecoin. The CBDC can be employed to replace SWIFT transfers and will allow citizens to freely pay and send money, she insisted.
Russia stepped up the digital ruble’s development as part of efforts to mitigate the negative effects of Western sanctions, including financial and banking restrictions, imposed over its invasion of Ukraine. Last week, Nabiullina revealed that the CBR is exploring options to integrate the digital ruble platform with other CBDC systems for the purpose of using the Russian digital currency in cross-border settlements.
Do you think Russia will speed up the implementation of its CBDC? Share your thoughts on the subject in the comments section below.
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