Russia Postpones CBDC Debut to Fine-tune Economic Strategy with Banks

The Bank of Russia has postponed the widespread introduction of the digital ruble to guarantee that the pilot operates seamlessly and financial institutions agree on a feasible economic model.

Officials from the Bank of Russia, the nation's central bank, are working to enhance the pilot and discuss the economic model with banks before rolling out the central bank's digital currency, or digital ruble, according to a report from TASS, Russia's state-owned news agency.

Authorities have stated that the new launch date will be disclosed at a later time, stressing the importance of ensuring the system serves both banks and their customers well.

"We will postpone the mass rollout of the digital ruble slightly longer than originally anticipated, specifically after we work out all the specifics in the pilot and hold all consultations with banks on the economic model that is most appealing to their clients. We will be able to announce the new mass launch date later."

Elvira Nabiullina, Governor of the Bank of Russia

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The digital ruble pilot project started in August 2023, enabling select banks and users to test payment transactions. Although the government had intended for a larger release by July 1, the timetable is now uncertain. The first stage involves about 600 employees from 12 banks, who are testing the creation and closure of digital wallets, wallet top-ups, person-to-person transfers, and automated payments and transfers.

According to an October 2020 consultation paper from the central bank, the suggested CBDC will supplement, not replace, existing cash and non-cash rubles in circulation. In contrast, China, a key benchmark for Russia's digitization efforts, has started paying civil servants in Changshu their state salaries using its own CBDC, the digital yuan, to promote the adoption of the state-controlled currency.

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