Digital Ruble Pilot Set for September Expansion

The Russian Central Bank will significantly expand its digital ruble pilot in September. This new phase aims to widen the reach of its Central Bank Digital Currency (CBDC) by 'tens of times.'

According to Pravda, starting on September 1, the digital ruble will be offered to 'real clients with real money.' The bank's First Deputy Governor, Olga Skorobogatova, announced these developments at the Russian Financial Congress.

She stated, ' We are expanding our pilot to encompass actual transactions from September 1.' Currently, 12 banks are participating in the pilot, and 19 more are joining. The goal is to significantly increase the number of individuals and companies that can participate in the pilot.

The Central Bank launched its CBDC pilot just over a year ago. Initially, about 600 selected individuals from 11 Russian cities participated.

Since then, the pilot has seen only minor expansion. The Moscow Metro and a small group of large banks were integrated.

Several months ago, the Central Bank announced plans to include a second group of banks in the pilot, although no specific timeframe was given. Skorobogatova and other senior officials aim to roll out the CBDC nationwide by the end of 2025.

Skorobogatova emphasized that there have been a 'huge number of applications and requests' from citizens and businesses across the country to use the digital ruble. She noted that there is now a 'real demand' for the project to be expanded to all banks and a larger number of participants.

Skorobogatova concluded that she 'believes' the digital ruble project 'will develop very actively in the second half of 2024 and next year.'

Thousands of Companies to Join CBDC Pilot

The Central Bank later clarified Skorobogatova's statement. It announced that the pilot would expand to include 9,000 individuals and 1,200 legal entities later this year.

The bank revealed earlier this year that its commercial banking partners have overseen approximately 19,000 peer-to-peer CBDC transactions. Additionally, pilot users have made about 6,000 payments with the digital ruble and 3,500 smart contract transactions.

Despite the expansion of the digital ruble pilot, the Central Bank maintains its stance against crypto exchanges. It continues to advocate for keeping tokens 'out of the national economy.'

The bank's commitment to its CBDC project reflects its broader strategy to modernize Russia's financial system while regulating other digital assets.