Russia prepares for digital ruble test

 

Russia

prepares for digital ruble test :

Russia is preparing to :

• expand its experimental digital rouble trial by starting real

• world testing with 13 banks next week

• the country's central bank said on Wednesday.

According to reports, Bank of Russia (BoR) will begin testing the Central Bank's Digital Currency Project (CBDC) using digital ruble on August 15, 2023.

Russia Begins Trials of

Central Bank Digital Currency Project :

President Vladimir Putin signed the Digital Ruble Act in July

while the Central Bank's experimental digital currency program

has been operating for some time.

Russia 

which has been severely sanctioned

by the United States and Europe in response to its invasion of

Ukraine

views the digital ruble as a way to evade financial constraints.

A statement by the Bank of Russia indicates that thirteen banks and a subset of

their customers will participate in the experimental experiments.

According to Olga Skorobogatova

• First Deputy Governor of the Bank of Russia

• the start of experimental operations using

• the original digital ruble is a crucial stage of the project.

This phase facilitates the inspection of

the functions of :

• the digital ruble platform in an industrial context

• improving the basic procedures in cooperation with customers

• identifying potential adjustments to the process

and ensuring the user-friendly and understandable experience.

The launch of experimental operations in real digital ruble is

the most important stage of the project

This will allow us to test

the operation of the digital ruble platform already in an industrial environment

take all necessary actions with the participation of customers

adjust the processes :

if necessary

1. and ensure that
2. the customer's path is appropriate
3. and understandable for users.

Skorobogatova

continued that the Bank's strategy involved

the widespread adoption of the digital ruble

Provided the results of the gradual test and successful implementation of intensive experiments covering all operational possibilities involving the digital ruble.

According to

the lieutenant governor

citizens and companies will be able to

actively use national digital funds at their own request starting in 2025.

Concerns about

the Central Bank's digital currency

• There was a request for legal clarification as to whether

• the digital ruble was a non-cash currency or a third form of cash

• as it was handled inconsistently in various laws.

Two news organizations conducted digital polls on the ruble.

A third-party polling organization surveyed 1,600 people.

Only 15% were aware of

the intentions to implement the central bank's digital currency in 2025.

Fifty-five per cent were familiar with the concept but were unaware of the details.

The remaining 30%

was first reported by the respondent.

1. Nearly half of
2. those surveyed could
3. not explain why digital ruble was needed.

CBDC's digital currency laws allow foreign ownership of digital ruble

and Russia investigates cases of possible use of CBDC for international payments.

The Brix

Convention is scheduled for later this month in South Africa

where a joint digital currency is expected to be discussed.

How will

the central bank's digital currency work?

According to the Declaration

the first phase of the pilot programme will focus on improving basic processes

Such as

the creation and financing of digital ruble accounts (digital wallets)

• digital ruble transactions between individuals

• simple automated payments

• and the use of QR codes.

for transactions involving the purchase of goods and services.

Participants in the pilot program will be able to use the digital ruble to

make purchases at 30 retail locations in 11 Russian cities.

By the end of 2023

the list of pilot participants is expected to be

expanded to include individuals and institutions.

Transactions will be expanded in 2024, with an additional payment scenario using

a dynamic QR code and allowing transfers between legal institutions.

Furthermore

models for simple automated payments will be expanded.

The launch of

the experimental digital rouble was previously postponed indefinitely due to

the fact that its legislation was passed to a first reading only in the State Duma.

However :

Russia continued the central bank's digital currency program

with President Vladimir Putin enacting the Digital Ruble Act on July 24.