- The Bank of Russia has begun operational testing of its central bank digital currency (CBDC) initiative, focusing on digital rubles.
- The pilot phase, starting on August 15, includes participation from 13 banks and a selected group of their clients.
The Bank of Russia (BoR) has announced the commencement of operational testing for its central bank digital currency (CBDC) initiative, specifically focusing on digital rubles. This significant testing phase is scheduled to start on August 15.
NEWS – 🇷🇺 Russian Central Bank reveals on Aug. 15, 13 banks will begin spending & using Digital Ruble at 30 locations across 11 cities (Central Bank of Russia) pic.twitter.com/HJNMpMA6EM
— Simply Bitcoin (@SimplyBitcoinTV) August 10, 2023
In a recent statement, the Bank of Russia disclosed that the pilot tests will feature the participation of 13 banks, along with a carefully selected group of their clients.
Olga Skorobogatova, the first deputy governor of the Bank of Russia, emphasized the importance of this pilot phase in the CBDC project. It serves as a pivotal step, allowing a thorough examination of the functionality of the digital ruble platform within an industrial context. This phase aims to refine essential procedures in close collaboration with clients, potentially making necessary adjustments to the process, all while ensuring a user-friendly and easily understandable experience for clients.
Skorobogatova outlined the bank’s approach to making the digital ruble widely accessible. This plan hinges on the results of a step-by-step testing process, contingent on the successful execution of comprehensive trials that cover all potential use cases for the digital ruble. The deputy governor anticipates that by 2025, both individuals and businesses will have the opportunity to actively utilize the national digital currency upon request.
Digital Ruble Usage in Retail Outlets
According to the announcement, the first stage of the pilot program will concentrate on improving essential procedures. This includes setting up and funding digital ruble accounts (digital wallets), facilitating digital ruble transactions between individuals, enabling straightforward automated payments, and implementing QR codes for purchases and services.
Participants in the pilot project will have the chance to use digital rubles for payments at 30 retail outlets spread across 11 cities in Russia. The plan is to expand the list of pilot participants by the end of 2023, involving individuals and businesses.
In 2024, the range of transactions will be expanded, introducing an additional payment scenario that involves a dynamic QR code and enables transfers between legal entities.
According to the release, the rollout of the digital ruble pilot was previously delayed indefinitely due to the fact that its legislative progress had only reached the initial reading in the State Duma, the lower chamber of the Federal Assembly. Nonetheless, Russia moved forward with the central bank digital currency initiative, as President Vladimir Putin signed the digital ruble legislation into effect on July 24.
New Transaction Fees for Digital Ruble from 2025
Additionally, Using its website, the regulatory body for Russian banking revealed the logo for the central bank digital currency (CBDC), featuring the familiar ruble symbol enclosed in a circle. The central bank’s release included four color schemes for organizations promoting the digital ruble.
In addition to revealing the brand identity, the Bank of Russia provided details about the commission fees associated with CBDC usage. Currently, users of the digital ruble will enjoy fee-free transactions until the end of 2024.
Starting in 2025, business-to-business transactions involving the digital ruble will incur a fee of 15 rubles ($0.16), while individuals will face a charge of only 0.3% based on the total transaction value. According to the updated fee structure, transactions related to civil services will be subject to a minimal charge of 0.2%, while those involving commercial entities will have a fee of 0.3%.
