The Central Bank of Russia has announced its plans to begin the implementation of the digital ruble in 2024. The announcement came out according to a recently published a draft document that sets out the main directions for its monetary policy in the next three years from The Central Bank of the Russian Federation (CBR).

According to Bitcoin. com, the paper reveals that the introduction of a digital version of the national fiat currency, the ruble is on the roadmap for the central bank. As cited by the source, the direct quote from the CBR paper reads: ”in 2024, the Bank of Russia will begin to gradually connect all credit institutions to the digital ruble platform and increase the number of available payment options and transactions using smart contracts.

” Crypto news outlet Bits. media was cited by Bitcoin. com detailing that while the full-scale implementation of the digital ruble will begin in 2024, features such as the offline mode or the connecting of non-banking financial organisations and exchanges are expected in 2025.

Through this phased approach, financial players will have a window of opportunity to adapt to the new conditions, the central bank explained. Some other remarks in the cited document indicate that if needed, certain restrictions may be imposed like limiting the amount of digital rubles that can be held in a single wallet or fixing a maximum amount that can be transferred with each transaction. The strategy behind the digital ruble In spite of some cited voices warning of potential instabilities created in the banking system, the Russian central bank reportedly does not expect a large-scale outflow of funds from bank deposits as traditional financial institutions attract capital by offering interest payments and bonus programmes.

The digital ruble is meant to function as ‘an additional incentive to increase the attractiveness of bank accounts,’ the CBR added. The Bank of Russia does not intend to pay any interest on digital ruble holdings on its CBDC platform, Bitcoin. com clarified.

Roadmap for implementation In terms of timespan, the CBR digital ruble project has been accelerated, with bank deputy governor announcing in June 2022 that the chronological roadmap for the full implementation of the digital ruble will be made public by the end of 2023. In April 2023, the CBR will begin trials with real transactions and users, which is earlier than initially planned. CBR officials have come public in May 2022 with information according to which the financial sanctions imposed by the West over Russia’s military invasion of Ukraine have reportedly played a role in the bank’s decision to speed up the development of the CBDC.

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