Ruble Digital Ready To Launch Next Year, This Is Russia's Central Bank Plan!
JAKARTA - The Central Bank of Russia (BSR) continues to strive to implement the digital ruble, the central bank digital currency (CBDC) which will be the third form of money next to rubles in cash and non-cash. Digital rubles are expected to increase efficiency, security, and financial inclusion in Russia.
BSR has been conducting digital ruble trials since August 2020, involving several banks, 600 users, and 30 traders in 11 cities. To date, there have been 25,000 digital ruble transactions, both between individuals and between consumers and businesses. Most transactions use blockchain-based smart contracts.
The Deputy Governor of BSR, Olga Skorobogatova, said that the trial went well and there were no significant errors. He added that the transaction speed of the digital ruble had reached several seconds, which was very competitive compared to other payment methods.
The Governor of BSR, Elvira Nabiullina, revealed that the planned launch of the digital ruble will begin in 2022. He said that BSR would add more banks and partners to join the trial, including Russia's largest bank, Sber.
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BSR will also develop new features for digital rubles, such as dynamic QR codes, online payments, and business-to-business transfers. In addition, BSR will build a centralized infrastructure to support the operations of digital rubles.
Nabiullina also stated that the digital ruble would co-exist with Digital Financial Assets (DFA), digital assets regulated by Russian law. He said that the DFA could be used for cross-border payments, in accordance with a law recently passed by the State Duma.
As chairman of the BRICS state group, Russia will also compile a report on BRICS Bridge, a CBDC-based payment solution involving Brazil, India, China, and South Africa. The goal of BRICS Bridge is to reduce dependence on the US dollar and increase cooperation between developing countries.
The digital ruble is one of BSR's initiatives to modernize Russia's financial system and follow the development of digital technology. With digital rubles, people and businesses in Russia are expected to enjoy easier, cheaper, and safer financial services.