Russia Rushes with Digital Ruble Pilot as Sanctions Take Toll
Main page News, Russia, Banking, CBDC, Regulations

Russia's central bank, the Bank of Russia, is planning to start international payments with digital ruble as soon as next year as sanctions over Ukraine bite, Reuters reports.

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The regulator is reportedly also eager to expand the number of countries that accept its Visa & Mastercard banking alternative called MIR. Russian central bank chief Elvira Nabiullina said:

"The digital ruble is among the priority projects. We have fairly quickly created a prototype [...] now we are holding tests with banks and next year we will gradually have pilot transactions."

Digital Ruble Will not Save Russia from Sanctions, Treasury's Adeyemo Says

Russia has been working on its own digital version of the national currency over the past few years as the pace toward global digitization accelerates. In February, Russian banks started testing the digital ruble platform. The central bank listed 12 banks, including sanctioned VTB and PSB into its pilot group.

As iHodl reported, the digital version of Russian ruble will be issued only by the Bank of Russia itself and stored in electronic wallets under the central bank's control. Financial institutions will act as intermediaries between the watchdog and users. These intermediates will attract users and interact with them, open and replenish wallets for them, execute transfer orders, as well as carry out AML and KYC policies. Users will be able to access their digital wallet from any bank via mobile application.

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