Russia's central bank aims to fully launch the digital ruble in 2024

Russia's central bank plans to begin full-scale implementation of the digital ruble in two years, according to a document detailing its monetary policy priorities for 2023-2025. As the development of the state-issued digital currency continues, the monetary authority intends to gradually connect various financial institutions to the platform.

The Russian central bank will introduce a digital ruble within 2 years

The Central Bank of the Russian Federation (CBR) recently published a document that sets out the main directions of its monetary policy for the next three years. Message reveals, that one of the regulator's key goals will be to introduce a digital version of the national fiat currency, the ruble, and 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.

While the full-scale implementation of the digital ruble will begin in two years, some of its functions, such as offline mode, as well as the connection of non-bank financial organizations and exchanges, are expected in 2025. Bits.media reported this with a link to the bank.

A phased approach to the introduction of the central bank digital currency (CBDC) will allow market participants to adapt to the new conditions, the CBR emphasized. The bank also noted that certain restrictions may be introduced if necessary, such as limiting the amount of digital rubles that can be held in one wallet or setting the maximum amount that can be transferred in each transaction.

Critics have warned that CBDC could potentially threaten the stability of the banking system, but the Bank of Russia does not expect a large outflow of funds from bank deposits, as traditional financial institutions attract capital by offering interest payments and bonus programs. For Russian banks, the digital ruble should serve as "another incentive to increase the attractiveness of bank accounts," she added.

Keeping money in bank accounts has some advantages over storing cash in digital wallets because the former accrues income, the central bank elaborated. This is why the Bank of Russia does not intend to pay any interest from holding digital rubles on its CBDC platform.

The latest timetable for the digital ruble comes after an earlier official statement indicated that the CBR was accelerating the project's timetable. In June, Deputy Governor Olga Skorobogatova announced that a plan for the full implementation of the new form of national currency is expected by the end of 2023.

CBR is also preparing to start trials with real transactions and users in April next year, earlier than originally planned. Skorobogatova admitted in May that financial sanctions imposed by the West due to Russia's military invasion of Ukraine played a role in the bank's decision to accelerate CBDC development.

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