According to reports, Russia’s central bank is planning to roll out its CBDC in 2024. This is part of its plan to use its CBDC, the digital Ruble, for cross-border payments.
BOR To Begin Gradual Rollout Of Its CBDC
The Bank of Russia’s (BOR) current monetary policy states that the institution will start connecting all credit institutions and banks to its CBDC system in 2024. Meanwhile, this is a very important year for the country.
The country will be holding its presidential election in March. However, the current president, Putin, can be re-elected according to the constitution.
In 2024, the BOR believes it will complete the trials of the CBDC for customer-to-customer transactions, business-to-customer, and customer-to-business settlements.
Next year, the Bank intends to carry out beta testing of smart contracts based on the digital Ruble. This will be used for trading activities by a few participants.
The bank also stated that it would gradually begin the digital Ruble rollout. It would unlock new trials and digital features each year.
Furthermore, when the country’s Treasury is ready to operate with the CBDC. The central bank will add business-to-government, government-to-consumer, government-to-business, and consumer-to-government payments.
Moreover, in 2025, the central bank hopes to have introduced an offline mode for its CBDC. It also has plans to integrate financial platforms, exchange infrastructure, and non-banking financial intermediaries into the system.
Russia’s BOR To Partner With Other Central Banks
Meanwhile, the central bank will partner with other nations’ central banks on CBDC payments. It would assist them to develop their CBDCs and show them how to use them for foreign exchange activities and cross-border payments.
“This step by step process of CBDC deployment and advancement would allow market participants to adapt easily,” the bank added.
According to Cointelegraph, Russia first began CBDC trials in February. This was after it had released a timeline for its CBDC launch in 2021.
Also, the country’s central bank formed a committee to carry out a pilot test of the digital Ruble. The committee is made up of twelve banks, including baking giants such as Tinkoff Bank, Sber, VTB, and others.
Although the country has been following its CBDC timeline, the case is different for the regulation of the crypto sector. The country has been lagging behind other nations after deciding not to ban crypto.
The President of Russia, Vladimir Putin, encouraged the adoption of a cryptocurrency law several times. However, the country has released its “On Digital Financial Asset” law for crypto.
Unfortunately, it does not address various areas of the crypto sector, such as crypto taxation, mining, and others.