Hideo Nakamura Participating banks in the digital ruble pilot will initiate testing transactions with real customers from mid-August, as disclosed by a senior official from one of the involved financial institutions. The trials are slated to begin shortly after Russia’s new legislation for the implementation of its digital currency was ratified.
First Digital Ruble Customer Payments to be Processed by Russian Banks Next Month
The digital ruble project’s pilot phase involves a selection of Russian banks that will commence transaction trials between actual users around mid-August, as revealed by Ingosstrakh Bank’s Board Chairman, Stanislav Danysh, cited by RBC Crypto.
The trial will encompass transfers of digital rubles between participating banks, retail and corporate customers, and will include digital ruble payments for commodities and services between businesses, Danysh elaborated.
Danysh stressed the significance of the project, mentioning that the initial testing will occur on a restricted scale, focusing on a limited number of participants, which will comprise bank employees and partners.
The digital ruble, a central bank digital currency (CBDC), is the product of the Central Bank of Russia (CBR), the sole operator of its platform. Private individuals can transfer digital rubles free of cost, while businesses will incur a commission of 0.3%.
CBR Governor Elvira Nabiullina, earlier this month, indicated that the nationwide introduction of this new form of national fiat currency could be anticipated starting from early 2025. The trials, commencing this year with basic operations, will extend to include contactless payments through NFC technology in 2024.
Earlier in July, the State Duma and the Federation Council, the two houses of Russia’s Federal Assembly, ratified legislation intended to enable the implementation of the CBDC. This week, the bill was signed into law by Russian President Vladimir Putin.
The legislation paves the way for the use of digital ruble payments throughout Russia, while another law, approved by the president in mid-July, effectively bans the use of other digital financial assets for payments.
Olga Skorobogatova, First Deputy Chairman of the Bank of Russia, clarified that the digital ruble is neither a cryptocurrency nor a stablecoin. The CBDC could potentially replace SWIFT transfers and will facilitate free payments and money transfers for citizens, she asserted.
In response to Western sanctions, including financial and banking restrictions due to its Ukraine invasion, Russia has expedited the development of the digital ruble. Last week, Nabiullina disclosed that the CBR is considering ways to merge the digital ruble platform with other CBDC systems to utilize the Russian digital currency for cross-border transactions.
What’s your take on Russia accelerating the launch of its CBDC? Share your thoughts in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Digital Ruble Transactions
When will the real user transactions of the digital ruble begin in Russia?
The real user transactions of the digital ruble are set to begin in mid-August, according to a top executive from one of the participating financial institutions.
Who will be conducting the initial tests of the digital ruble?
A group of Russian banks involved in the pilot phase of the digital ruble project will be conducting the initial tests. The trials will be carried out on a limited scale, including bank employees and partners as participants.
What is the digital ruble?
The digital ruble is a central bank digital currency (CBDC) issued by the Central Bank of Russia. It is a new form of the national fiat currency, which private individuals can transfer free of cost, while businesses will incur a 0.3% commission.
When can we expect large-scale introduction of the digital ruble?
According to the CBR Governor Elvira Nabiullina, the large-scale introduction of the new form of the national fiat is to be expected from the beginning of 2025.
What does the new digital currency legislation in Russia entail?
The new digital currency legislation in Russia facilitates the implementation of the digital ruble, while another law effectively bans the use of other digital financial assets for payments. The legislation was signed into law by Russian President Vladimir Putin earlier in the week.
Is the digital ruble a form of cryptocurrency or stablecoin?
No, the digital ruble is not a cryptocurrency or a stablecoin, as clarified by the First Deputy Chairman of the Bank of Russia, Olga Skorobogatova. It is a CBDC that could potentially replace SWIFT transfers.
More about Digital Ruble Transactions
- Digital Ruble Trials to Start in 2023
- Understanding Central Bank Digital Currencies
- Russia and the Digital Ruble Project
- Overview of SWIFT Transfers
- Legal Framework for Digital Currencies in Russia
6 comments
Wow, this is big news! Never thought I’d see the day when Russia would start digital currency transactions. Lets see how this turns out!
If digital ruble is not a cryptocurrency or a stablecoin, then what is it exactly? Can anyone explain this to me in simpler terms?
so, businesses will have to pay a commission for these digital ruble transfers… wonder how that will work out.
digital ruble, huh? interesting stuff. maybe it’s about time I started getting my head round this digital currency thing.
Can’t believe this…so we’re really moving towards digital currencies now huh? Still don’t fully understand how this digital ruble thing is gonna work though.
i’m not so sure about this… feels like a way for the government to have even more control over our money. But then again, what do I know.