The Bank of Russia to Pilot Digital Ruble Settlements in 2023
Russia’s
monetary authority intends to conduct the first settlements with the digital
ruble next year, its governor announced this week. Speaking to Russian
lawmakers, the official highlighted the important role the new currency is
going to play for Russia under sanctions.
The full
launch of the digital ruble, Russia’s central bank digital currency (CBDC),
should take place before 2030, according to the approved Financial Market
Development Strategy of the Ministry of Finance. However, the Central Bank of
Russia (CBR) plans to begin testing it in settlements as early as 2023, its
Chair, Elvira Nabiullina, announced in the State Duma. Quoted by Tass, she
elaborated:
"We quickly created a prototype of the digital ruble, and now we
are already testing it with banks. Next year, we will pilot settlements in the
real economy."
The CBR
started trials with the digital ruble in January and announced the first
successful transactions between individual wallets in mid-February. Five
financial institutions are currently participating, and in the coming months,
another seven banks will join the experiments that are expected to continue
throughout 2022.
Nabiullina
insisted that the digital ruble would create new opportunities for Russia, its
citizens, and businesses. It will be used by the government for targeted
payments to support certain sectors of the economy and the social sphere.
Transfers between individuals will be free of charge, while payments for goods
and services may be subject to a small commission of 0.4–0.7%.
Speaking to
members of the lower house of parliament, the governor emphasised that the
digital currency would play a special role now when Russia is under
unprecedented Western sanctions. The CBDC is expected to facilitate
not only settlements in the Russian Federation, but also in cross-border payments
with partners.
The head of the Bank of Russia expressed her hope that Russian
deputies will adopt the necessary legal amendments to set the ground for the
digital ruble’s commercial implementation. Earlier this week, First Deputy
Governor Olga Skorobogatova emphasised the importance of moving forward with
the digital ruble project and assured the bank would not delay the trials.
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