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• The conglomerate of 12 Russian largest state-backed as well as private banks such as Sberbank, VTB and Tinkoff Bank have expressed their willingness to participate in the test of the digital ruble.
• The test will be conducted in several stages throughout 2022.
• The first stage of the piloting would include issuance of the digital currency as well as several other aspects.
The Central Bank of Russia will pilot its test on its central bank digital currency in January 2022. The Central Bank of Russia on June 29 announced the formation of the pilot group for testing the digital ruble. The conglomerate of 12 Russian largest state-backed as well as private banks such as Sberbank, VTB and Tinkoff Bank have expressed their willingness to participate in the test of the digital ruble. Other notable participants are Alfa Bank, Gazprombank, Promsvyazbank, Rosbank, Ak Bars Bank, Dom.RF, SKB-Bank, TKB and Soyuz bank. According to the announcement the prototype platform for the digital ruble is expected to be completed by December.
Digital Currency Increases Availability of Payments
The test will be conducted in several stages throughout 2022 and based on the outcome, a full proof roadmap for the launch of the CBDC. Olga Skorobogatova, First Deputy Governor of the Bank of Russia said that the digital ruble would significantly reduce the cost of payments and transfers for the citizens. For efficient usage of the digital currency, a seamless transition from paper to digital ruble is a necessity. Hence it becomes very important for them to communicate with the participants at all stages of the test. To ensure better communication, they formed the first pilot group of banks. This will give the banks enough time to get used to its technical as well as technological point of view.
Russia Plans to Increase the Number of Participants in the Test Pilot
The first stage of the piloting would include issuance of the digital currency as well as several other aspects. In the coming future, the Central Bank of Russia plans to amplify its number of listed operations as well as bring in more participants to the test.Back in October 2020, the Central Bank of Russia for the first time announced that they were developing their very own central bank digital currency and issued a consultation paper for the same. The Central Bank of Russia perceives the idea of the CBDC as an additional form of money alongside cash and non-cash.
However, the Central Bank has been keeping the digital ruble above other private cryptocurrencies. This to some extent has attracted disagreement from several prominent crypto supporters. For instance, Russian industrial tycoon Oleg Deripaska has criticized the Russian government for not providing a real financial instrument enabling independence in foreign trade settlements. She argues that even small countries like El Salvador have enabled Bitcoin as an official payment form.
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