RUSSIA SETS TO LAUNCH CBDC PILOT IN AUGUST, 2023

The Bank of Russia has announced its readiness to begin the central bank digital currency (CBDC) pilot on 15 August, with the participation of 13 banks.

 

This was revealed in a press conference which was held on August 9, 2023 in Moscow.

 

This announcement is a remarkable step toward the country’s central bank’s digital currency vision, which is an instrument of tackling the financial strain on the country due to Western sanctions.

 

These 13 banks will begin transactions using the digital ruble at 30 designated locations spread across 11 cities in Russia.

 

The pilot will be open only to a restricted group of their customers who can create digital wallets to make peer-to-peer transfers during the pilot.

 

They can also make auto payments and purchase using QR codes.

 

According to the central bank, users can use CBDCs only for payments or transfers, not loans or deposits.

 

According to the bank, most Russians will not be able access the online wallets until at least 2025.

 

The apex’s central bank governor, Elvira Naibullina, recently assured Russians that they would not be forced to use the digital ruble.

 

However, she expressed confidence that more people would consider doing so.