Russia Gears Up for CBDC: To Begin Digital Ruble Trials

Russia Gears Up for CBDC: To Begin Digital Ruble Trials

Time Stamp: August 9, 2023 12:03 PM
Source Node: 2812471

Russia will begin testing digital ruble for real-world
use cases on August 15 with 13 banks and some of their clients . According to a
statement issued by the country’s central bank, Russia will begin issuing the digital currency for broad use cases if the pilot project is successful.

“The start of pilot
testing for the digital ruble on real transactions is a critical stage of this
project,” Olga Skorobogatova, the First Deputy Governor of the Bank of Russia, said in the statement translated from Russian.

“We will be able to
test how the digital ruble platform operates in real-life conditions, check all
necessary procedures with the participation of clients, adjust the processes
where needed, and make sure that the customer journey is convenient and
easy-to-understand for users.”

Specifically, the
central bank is testing transactions, including opening digital wallets for the
ruble, money transfers, transfers between users, payments of bills, and
purchasing goods and services using the digital currency. According to
Skorobogatova, users can make payments in digital rubles at 30 points of sale
located in 11 Russian cities.

Additionally, Russia is
planning to expand the number of digital rubles to include dynamic QR
code-based payments and business-to-business digital ruble transfers. The
heavily-sanctioned country is also planning to expand the number of
participants both in the corporate and retail segments.

Russia’s Digital Ruble
Bill

In July, Finance
Magnates reported that
Russian President Vladimir Putin had signed
into law the digital
ruble bill. The legislation allowed the Bank of Russia to issue its own digital
currency, otherwise known as the Central Bank Digital Currency (CBDC). The
currency is expected to be used in Russia alongside other currencies and payment methods.

Russia
was dealt a big blow after the US, and several of its Western allies sanctioned
the country for invading neighboring Ukraine. Following the sanctions, Russia
has shifted focus to digital currencies to circumvent the restrictions, which
has crippled its financial services.

Russia will begin testing digital ruble for real-world
use cases on August 15 with 13 banks and some of their clients . According to a
statement issued by the country’s central bank, Russia will begin issuing the digital currency for broad use cases if the pilot project is successful.

“The start of pilot
testing for the digital ruble on real transactions is a critical stage of this
project,” Olga Skorobogatova, the First Deputy Governor of the Bank of Russia, said in the statement translated from Russian.

“We will be able to
test how the digital ruble platform operates in real-life conditions, check all
necessary procedures with the participation of clients, adjust the processes
where needed, and make sure that the customer journey is convenient and
easy-to-understand for users.”

Specifically, the
central bank is testing transactions, including opening digital wallets for the
ruble, money transfers, transfers between users, payments of bills, and
purchasing goods and services using the digital currency. According to
Skorobogatova, users can make payments in digital rubles at 30 points of sale
located in 11 Russian cities.

Additionally, Russia is
planning to expand the number of digital rubles to include dynamic QR
code-based payments and business-to-business digital ruble transfers. The
heavily-sanctioned country is also planning to expand the number of
participants both in the corporate and retail segments.

Russia’s Digital Ruble
Bill

In July, Finance
Magnates reported that
Russian President Vladimir Putin had signed
into law the digital
ruble bill. The legislation allowed the Bank of Russia to issue its own digital
currency, otherwise known as the Central Bank Digital Currency (CBDC). The
currency is expected to be used in Russia alongside other currencies and payment methods.

Russia
was dealt a big blow after the US, and several of its Western allies sanctioned
the country for invading neighboring Ukraine. Following the sanctions, Russia
has shifted focus to digital currencies to circumvent the restrictions, which
has crippled its financial services.

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