Russia will start a phased implementation of its digital ruble in 2023. The major bank wants to conduct enough tests with market participants.
Russia’s major bank has revealed that it has started testing its digital ruble project and it will be rolled out with new features in 2023.
According to a document shared by the main bank, the digital ruble would be used as a real money settlement between individuals and companies by 2023.
In 2024, the bank said the project would be used to connect “credit institutions to the digital ruble platform and increase the number of payment and transaction options available using smart contracts.”
The bank said it plans to approach the launch carefully, to avoid missing any vital evidence.
Further Details about the Announcement
The bank’s goal is to make digital currency usable by individuals, businesses, and the government.
The bank noted that “the phased process of introducing the digital ruble will provide market participants with an opportunity to adapt to new conditions.”
In addition, the bank also hopes to extend its use beyond the country. It plans to cooperate with friendly central banks so that the digital ruble can facilitate international transactions.
Banks also want non-bank financial institutions and exchanges to enter the scene in 2025 with offline mode integration.
Russia’s crypto regulatory framework remains confusing. President Vladimir Putin recently signed a bill banning crypto payments in the country.
Governments Adopt CBDCs
While Russia is planning a gradual rollout of its digital ruble, other countries have also made steady progress with their central bank digital currency (CBDC) project.
South Korea began testing its national digital currency in July. According to local media reports, the main bank invited several commercial banks operating in the country to participate in the tests.
The Bank of Korea announced last July that it has been progressing to the next phase of its CBDC development, which is real-world testing. By doing this, the bank intends to onboard commercial banks to test interoperability between the CBDC and their IT systems. At least ten commercial banks have been invited, including Shinhan Bank and NH Nonghyup Bank, according to a report by Ajo Economy News. The test will focus on remittances and payments between individual users, a phase that is expected to conclude at the end of 2022.
Thailand has also recently started a study on a CBDC project. However, the Asian country’s main bank insisted that it is not issuing a retail digital national currency.
In Thailand, CBDC will be tested in cash-related scenarios such as paying for goods and services. This will include 10,000 retail users and will take place in limited areas. Among the companies participating in the experiment, which begins near the end of 2022 and lasts until mid-2023, there are the Siam Commercial Bank, 2C2P, and the Bank of Ayudhya.
By Audy Castaneda
