After Banning Cryptocurrency, Russia Started Rolling Out Digital Ruble

OVERVIEW

  • The Central Bank of Russia (CBR) completed the prototype of the digital ruble platform in December and is now beginning to experiment with transactions.
  • A dozen banks have been invited to join the first stage of the project’s pilot phase.
  • Russia’s central bank has maintained a hardline stance on cryptocurrencies and recently proposed a wide-ranging ban on crypto-related activities.

In December, the Central Bank of Russia (CBR) finalised the prototype of the digital ruble platform and is presently testing transactions. A dozen banks have been asked to participate in the project’s pilot phase’s initial stage. The monetary authority intends to gradually broaden the scope of participants to include additional financial service providers and transaction kinds.

After contacting the banks, Tass learned that the majority of Russian banks are preparing to begin testing the new Central bank digital currency (CBDC). One of them, Promsvyazbank (PSB), is presently processing C2C payments, according to Maxim Khrustalev, counsellor to the bank’s vice chairman.

“Technical testing of C2B, B2C, and B2B payments will commence after the customer-to-customer transactions.” “Bank of Russia will begin to deploy the digital ruble platform into commercial operation based on the outcomes of the pilot,” Khrustalev stated.

12 Banks Are Participating In The Digital Ruble Launch

Tinkoff Bank is also participating in the experiment of a new digital version of Russian fiat currency. According to a statement from the online neobank, “Tinkoff is prepared to pilot the digital ruble in the near future.” Tinkoff recently joined the crypto industry by purchasing a majority share in Aximetria, a Swiss fintech firm.

Russia’s central bank has taken a tough stance on cryptocurrencies, proposing a broad ban on crypto-related operations lately. It started thinking about a digital ruble three years ago and decided to look into ideas for issuing the CBDC in 2020, when it released a consultation paper on the subject. The bank unveiled a digital ruble proposal in April 2021, defining its main architecture.

A user outrages on Russian banks for following the same blue print meta the other countries are using to ban cryptos. Targeting the government he says, ” No one else thinks Russia will criminalise all cryptocurrency and replace it with government issued digital ruble is a big deal ?”

Ak Bars, Alfa-Bank, Dom.rf Bank, Gazprombank, Rosbank, Sberbank, Bank Soyuz, and Transcapitalbank are among the banks participating in the pilot’s initial stage. At the second stage, when transactions between private persons and corporate entities, such as consumer-to-business (C2B), business-to-business (B2B), and business-to-government (B2G) transactions, the Federal Treasury will join forces with financial intermediaries.

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