The Bank of Russia plans to launch the infrastructure for digital ruble payments by July 2025, allowing larger banks to provide digital ruble accounts and services to customers. Smaller banks will follow in the years after.
Big banks to lead the way
The Bank of Russia proposed that its central bank digital currency, the digital ruble, will be fully integrated into the payment system by July 2025.
This timeline requires the largest banks in the country to offer services such as digital ruble accounts and payment options alongside traditional methods.
The central bank already forwarded these plans to the Russian Ministry of Finance, with legal adjustments needed to ensure implementation, as the biggest banks must be ready by 2025, while mid-sized banks have until 2026 to comply.
For smaller credit institutions, the deadline extends to 2027. Retailers with over 30 million rubles in annual revenue will need to accept digital rubles by 2025, with smaller businesses following two years later.
The Bank of Russia shared that both financial institutions and businesses will adjust to the new system as they upgrade their infrastructure to accommodate digital rubles.
Why digital ruble matters, what’s the point of a CBDC?
The introduction of the digital ruble is expected to boost the overall efficiency of Russia’s payment systems.
By cutting down costs associated with transactions, it wants to make the financial system more streamlined.
This could encourage more widespread use, with the central bank confirming that digital ruble transactions will be free for citizens.
Businesses, on the other hand, will have the option to choose between accepting digital rubles or traditional rubles, depending on what best fits their needs.
The pilot program currently running includes 12 banks, 9,000 individuals, and 1,200 businesses, all testing the waters of this new payment model.
The Bank of Russia explained that it is up to people and companies to decide which type of ruble they prefer to use.
Total control for the money will change everything
This digital currency project brings to mind similar global initiatives where countries are experimenting with CBDCs to modernize payment systems and economic resilience.
With Russia’s past experiences in developing digital infrastructure, the digital ruble rollout could mean a huge change in how everyday transactions are made in the country.
As digital currencies become more commonplace, the ripple effect might influence neighboring countries and international businesses working with Russia.
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