The Bank of Russia announced a delay in the mass implementation of the digital ruble. The decision follows a phase of pilot testing, which highlighted the need for additional consultations with banks and the refinement of the economic model.
Reasons for Delay
The initial plan was for a broad introduction of the digital ruble by July 1, 2024. However, as stated by the Bank of Russia's Governor Elvira Nabiullina, the further expansion of the program will occur later to ensure comprehensive testing and consultations with financial institutions.
Current Testing Results
The pilot testing of the digital ruble began in August 2023, involving 12 banks and around 600 employees. Key functionalities being tested include digital wallet management, fund transfers, and automated payments. The central bank is committed to ensuring a cautious approach to integrate the digital ruble into Russia’s financial system.
Future of the Digital Ruble
A 2020 consultation paper from the Bank of Russia stated that the digital ruble will complement rather than replace traditional cash and non-cash rubles. This follows global trends in Central Bank Digital Currency (CBDC) adoption, with some countries, like China, taking a more aggressive approach. In September 2024, Sberbank, Russia's largest bank, confirmed it would offer the digital ruble to its customers by early 2025, participating in the second phase of testing with around 20 other financial institutions.
The Bank of Russia continues to develop the digital ruble project, which aims to modernize the country's financial system and offer new opportunities for banks and their clients. Although the exact date for mass rollout remains unknown, the process is progressing with all necessary precautions.
