Russian Lawmaker: Domestic Rollout Set for 2025

A senior Russian lawmaker has revealed new timelines for the rollout of the digital ruble, the nation's Central Bank Digital Currency (CBDC).

According to Anatoly Aksakov, chairman of the State Duma's Committee on the Financial Markets, cross-border functionalities for the digital ruble will not be ready until 2026.

Speaking to the state news agency TASS, Aksakov stated, "Russians will be able to make payments abroad with digital rubles in two years at the earliest." This marks a significant delay, but the domestic rollout is slated for 2025. Broader adoption efforts within Russia are expected to start before the end of 2025.

Piloting the Digital Ruble

The Central Bank of Russia is piloting the digital ruble with 12 banks and 600 citizens across 11 cities. Earlier this month, the bank announced plans to broaden this pilot on September 1, incorporating around 20 more banks and 9,000 citizens.

This pilot phase is crucial for identifying potential challenges and ironing out operational kinks before a nationwide rollout.

However, this timeline contrasts with earlier statements. Finance Minister Anton Siluanov claimed last December that all Russians would be able to use digital ruble wallets for payments by 2024.

Russian experts had also predicted that 2024 would be a significant year for cross-border CBDC developments, but these forecasts now appear overly optimistic.

Putin's Push for Digital Assets

President Vladimir Putin has been vocal about the need to expedite the adoption of digital assets, including the digital ruble.

This week, he stressed the importance of seizing the moment to leverage digital assets within the country and with foreign partners. He emphasized that the Central Bank should use the digital ruble more broadly in Russia's economy.

Putin stated, "It is time to take the next step. We must move to a broader, full-scale implementation of the digital ruble in the economy. We must adopt it in the economy and the financial sector." His remarks underline the urgency and importance of accelerating the pace of digital transformation in Russia.

Gradual Adoption to Minimize Risks

Aksakov emphasized the need for a gradual approach to minimize risks associated with the new digital currency. He noted that pilot participants have already processed over 30,000 transactions using the digital ruble.

As of July 1, citizens have made over 27,000 peer-to-peer transfers and used the digital ruble in more than 7,000 payments for goods and services.

This cautious but progressive approach aims to ensure a smooth transition to a digital economy. The Central Bank and government officials are keen to mitigate potential risks and ensure widespread acceptance of the digital ruble within Russia and across borders by 2026.