Bank of Russia has set out to launch its central bank digital currency, known as the digital ruble, by July 2025, following successful pilot tests. According to TASS, Russia’s state-run news agency, if everything goes as planned and the pilot programmes are successfully completed, Russia will launch the digital fiat currency in a ‘mass implementation’ by July 2025.

However, the transition will be a ‘gradual process.’ Earlier in April 2024, the governor of the Bank of Russia emphasised that the widespread implementation of Russia’s CBDC will likely take five to seven years, noting that it will be a ‘natural process because the choice of people and businesses is crucial, and it must be convenient for them.’ A history of Russia’s CBDC The Bank of Russia has been running a pilot project for its CBDC among local banks since August 2023. 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. The digital ruble represents a blockchain-based digital form of the Russian national currency.

Like all CBDCs, it is by nature a centralised digital currency, issued and controlled by the central bank. The Russian government, and the central bank in particular, have been discussing and developing a state-issued digital currency, previously referred to as the ‘crypto ruble,’ since as far back as 2017. 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 digitisation 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. .