A paper from the Bank of Russia, the nation’s central bank, dated August 11, stated that as early as next year, a digital form of the ruble might be ready and suitable for settlement between individuals and businesses. Russian commercial banks have been instructed by the central bank to get ready to deal with a digital ruble within the next two years, which suggests that a central bank digital currency (CBDC) could be really on the way
According to the study, the Russian CBDC could be used by 2024 to link financial institutions to the ruble’s digital platform and to “expand the number of payment choices and transactions available using smart contracts.”
The Bank of Russia also expects non-banking financial institutions and exchanges to begin using the new digital money by 2025. The CBDC is anticipated to lower settlement and transaction costs in comparison to currently used techniques, according to the central bank.
One of the goals of the project, according to a local news source, is to make financial services more accessible in distant regions of Russia, particularly those with poor internet connectivity. With plans for cooperation between Russian and international central banks for cross-border and foreign exchange operations, the central bank also aims to increase the Russian economy’s competitiveness.
The distribution would be conservative and slow, the memo emphasised, in order to prevent mistakes along the way. According to the bank, the gradual introduction of the digital ruble will provide market participants with the time to adjust to new circumstances.