Russian Banks to Begin Digital Ruble Payments

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Key Takeaways:

  • Russian banks to begin Digital ruble payments.
  • Customer-to-customer (C2C) payments have been the focus of the trials, with the Bank of Russia intending to extend the sorts of transactions in the future.
  • Due to a potential cryptocurrency ban, the Bank of Russia has received a bomb threat.

In December, the Central Bank of Russia finished the prototype of the digital ruble platform and is presently testing transactions. A dozen banks have been invited to participate in the project’s pilot phase’s first stage. The monetary authority intends to gradually broaden the scope of participants to include additional financial service providers and transaction kinds.

After contacting many Russian banks, Tass learned that they are preparing to begin testing the new central bank digital currency (CBDC). According to Maxim Khrustalev, counsellor to the bank’s vice chairman, one of them, Promsvyazbank (PSB), is presently processing C2C payments. “Technical testing of C2B, B2C, and B2B payments will begin after the customer-to-customer transactions.” The Bank of Russia will begin to deploy the digital ruble platform into commercial operation based on the outcomes of the pilot,” Khrustalev added.

Tinkoff Bank is also participating in the digital ruble pilot. According to a statement from the online neobank, “Tinkoff is prepared to pilot the digital ruble in the near future.” By acquiring a controlling position in the Swiss-registered fintech startup Aximetria, the bank has lately entered the crypto industry. VTB, a large Russian bank, has announced that its infrastructure is ready to test the digital ruble. The bank’s press office elaborated, “Piloting includes integration with the digital ruble platform and the introduction of services such as creating a wallet through a mobile application and digital ruble transactions between individuals.”

Russia’s central bank has taken a tough stance on cryptocurrencies, proposing a broad ban on crypto-related operations recently. It started thinking about a digital ruble three years ago and decided to look into ideas for issuing the CBDC in 2020 when it released a consultation paper on the subject.

As a result, the Bank of Russia has received an explosion threat. The whole personnel of the institution was evacuated in response to the call. Specialists searched the area, but there were no reports of any explosives being discovered. The bank’s representatives likewise declined to comment on the subject.

Conversely, the Bank of Russia appears to be steadfast in its opposition to the industry. Perhaps this is an attempt to undercut a decentralized digital ruble alternative.

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Chetna Prakash