The Bank of Russia, the country's central bank, has plans to launch a prototype of its central bank digital currency before the end of the year, local news outlet Prime has reported referring to the statements of the institution's deputy chairman Alexey Zabotkin.
In particular, the launch of the prototype currency will take place before 2022, when additional tests with the asset are scheduled to start.
Elvira Nabiullina, the governor of the institution, said in October last year the Bank of Russia may launch a digital ruble soon. Now, Alexey Zabotkin's statements confirm that the bank's work is progressing to the point that it intends to launch a prototype of the digital ruble before the end of the year.
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Nabiullina has previously said the bank's CBDC will act as a "third form of money" and will in no way replace cash or non-cash digital payments. Instead, this will become an additional means of payment. Moreover, even though the currency will not allow its users to remain anonymous, it will reinforce confidentiality.
It should be noted that although the prototype of the currency will be launched later this year, users will not be able to make transactions during these initial tests.