Digital Ruble 'Promising,' Pilot Likely in 2021, Says Bank of Russia Chief

The Bank of Russia might launch its own CBDC, a digital ruble, after piloting the project at the end of next year, its chairwoman said.

AccessTimeIconOct 23, 2020 at 1:48 p.m. UTC
Updated Sep 14, 2021 at 10:22 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

MOSCOW – Russia’s central bank might pilot its own central bank digital currency (CBDC) at the end of 2021, said the Bank of Russia's head, Elvira Nabiullina, during an online press conference on Friday. 

“We view this project as promising, it fits into the concept of the digital economy [currently being built in Russia]. We want to evaluate the balance of risks and advantages of such a project before we proceed," Nabiullina said.

Answering a question from CoinDesk, the central bank executive said the pilot would be carried out with a limited set of users and "might be possible at the end of next year.”

The Bank of Russia is currently receiving feedback on its report on the digital ruble published earlier in October, Nabiullina added. The decision whether the digital ruble will be actually launched, as well as whether it will use the blockchain technology, is up for discussion, the report indicated. 

Addressing some of the details of the possible CBDC, Nabiullina said it's also not yet decided if transactions will be transparent to observers. She stressed, however, that “maximum trust and maximum confidentiality” are key goals for the project. 

The digital ruble, if issued, will not replace or push out other forms of money, physical cash and electronic payments, however. “People will decide for themselves which kind of money for which kind of purposes they want to use,” Namiullina said. Additionally, dedicated financial education programs should be offered to help people understand how to use the digital ruble. 

“People and enterprises want fast, convenient, almost immediate payment transactions,” Nabiullina said.

Among the main challenges for the digital ruble, she named the need of robust cybersecurity and the potential feature of the offline use. The Bank of Russia is considering making the digital ruble available offline as well as via the internet, however, there are currently no feasible technological solutions for this, Nabiullina said.

According to the report, the digital ruble will stimulate innovation and competition in the financial sector and help ensure funds allocated to government-backed projects are not misappropriated. 

In a later comment to the media, the central bank said the digital ruble could help diminish the dependence of the Russian economy on the U.S. dollar and the threat of the future sanctions on Russia.

The authority is collecting public feedback on the digital ruble report until Dec. 31. An evaluation will follow and and feed into the decision on whether to proceed with a launch. The final decision will only be made after the pilot, the report said.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.