The Digital Ruble Is 'Desperately Required,' Russia's Central Bank Declares That It Will Not Delay Testing

The Russian Central Bank has stressed the critical nature of progressing with its digital ruble project. According to a statement issued by a senior official, the monetary authority has no intention of delaying the trials, despite the fact that not all invited banks have yet agreed to participate.

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The digital ruble is "very necessary," First Deputy Chairman of the Bank of Russia Olga Skorobogatova stated recently in a statement cited by business news portal RBC's crypto page. The regulator will not postpone planned tests of the prototype currency platform, a senior official stated, adding:

If we move quickly with testing and legislative changes, we can implement it in the coming years.

The Central Bank of Russia (CBR) began testing the digital ruble in January and reported the successful completion of the first transaction between individual wallets in mid-February. At least a dozen Russian financial firms are participating in the trials, which are scheduled to go through 2022.

Skorobogatova stated that not all participating banks are technically prepared to participate in the testing at the moment. She stressed, however, that this should have no bearing on the timeline for the initiative to create the Russian central bank's digital money (CBDC).

Skorobogatova stated earlier this year that the second round of the trials will begin in the fall. The CBR intends to commence activities involving payments for products and services in the digital ruble, as well as government transfers, during that stage. Additionally, the bank will collaborate with the Federal Treasury to issue smart contracts.

The digital ruble is Russia's third version of its national fiat currency, following paper cash and electronic — bank money — notes issued by the Russian central bank. It will be available to Russians both online and offline. According to the CBR, its CBDC will open new doors for citizens, enterprises, and the state.

As Russia grapples with the consequences of escalating western sanctions over the Ukraine war, Moscow has been urged to resort to cryptocurrency to avoid the limits and finance international trade. A proposal to make the digital ruble a reserve currency was also floated last month as a method to minimize Russia's reliance on the US dollar during this period of frozen foreign cash reserves.

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