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Crypto News

Russia Will Begin Real-User Digital Ruble Transactions In August

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

digital ruble

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According to a top executive of one of the banks participating in the digital ruble trial, real-world transactions will begin in mid-August. Weeks after Russia passed digital currency legislation, the trials will begin.

Stanislav Danysh, Chairman of the Board of Ingosstrakh Bank, told RBC Crypto that a group of Russian banks collaborating in the digital ruble pilot phase will begin real-user transactions in mid-August.

Digital ruble transfers between participating banks, retail and corporate clients, and digital ruble payments for products and services between enterprises will be tested. Danysh detailed.

He noted that due to the project’s importance, early testing will be limited to bank staff and partners.

The Central Bank of Russia (CBR) is the sole operator of the digital ruble, a central bank digital currency (CBDC). Digital ruble transfers will be free for individuals but 0.3% for businesses.

CBR Governor Elvira Nabiullina said last month that the new national fiat should be widely used starting in the first quarter of 2025. In 2024, the experiments will broaden to incorporate contactless payments using NFC technology after beginning with basic operations this year.

The State Duma and the Federation Council of Russia’s Federal Assembly both enacted bills earlier in July that would make it easier to implement the CBDC. This week, Vladimir Putin, the president of Russia, signed the legislation into law.

The law paves the way for digital ruble payments in the Russian Federation, while another law that was signed by the head of state in mid-July effectively outlawed the use of other digital financial assets for payments.

Olga Skorobogatova, the first deputy chairman of the Bank of Russia, emphasized that the digital ruble is neither a cryptocurrency nor a stablecoin. She emphasized that the CBDC can be used to replace SWIFT transactions and will enable people to send and receive money without restriction.

Russia developed the digital ruble to offset Western sanctions, particularly financial and banking limitations, after its invasion of Ukraine. The CBR is considering integrating the digital ruble platform with other CBDC systems to use the Russian digital currency in cross-border payments, Nabiullina said last week.