Russia delays CBDC launch to finalize economic model with banks

Russia is delaying the mass rollout of its digital ruble to ensure the pilot runs smoothly and banks align on a viable economic model.

Russia ‘s central bank, the Bank of Russia, has decided to delay the mass rollout of its central bank digital currency , known as the digital ruble, as officials work to improve the pilot and discuss the economic model with banks, Russia’s state-backed news agency TASS reports .

The new launch date will be announced later, authorities said, emphasizing the need to ensure the system benefits both banks and their clients.

“We will move to the mass implementation of the digital ruble a little later than originally planned, namely after we work through all the details in the pilot and hold all consultations with banks on the economic model that is most attractive for their clients. We will be able to announce the new mass launch date later.”

Elvira Nabiullina, Governor of the Bank of Russia

The digital ruble pilot began in August 2023, allowing select banks and users to test payments. The government had aimed for a wider launch by July 1, but the timeline now remains unclear. The initial phase involves around 600 employees from 12 banks, testing the opening and closing of digital wallets, wallet top-ups, person-to-person transfers, and automated payments and transfers.

In a consultation paper from October 2020, the central bank  reassured  citizens that the proposed CBDC will complement, not replace, existing cash and non-cash rubles in circulation. In contrast, China, a key benchmark for Russia’s digitization efforts,  has begun  paying civil servants in Changshu state salaries using its own CBDC, the digital yuan, to encourage the adoption of the state-controlled currency.