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Russia is set to commence consumer trials of its digital rouble on August 15, transitioning from an extensive testing phase with banks, as part of its strategy to enhance cross-border transactions, according to an announcement by the central bank on Wednesday (August 9, 2023).
Following the footsteps of numerous nations, Russia has been diligently developing its central bank digital currency (CBDC) – digital tokens issued by central banks – over the past few years. This initiative aims to modernize its financial system and counteract the influence of cryptocurrencies like Bitcoin.
The Atlantic Council think tank’s research reveals that eleven countries, including several Caribbean nations and Nigeria, have already introduced CBDCs. Additionally, many more, including China, are currently involved in large-scale pilot programs.
“We are preparing to conduct tests with actual customers,” stated Olga Skorobogatova, the central bank’s First Deputy Governor, during Wednesday’s announcement.
The pilot phase will encompass activities such as creating digital wallets, executing transactions using digital roubles, and facilitating transfers between approximately 600 customers and 30 companies based in 11 cities.
Skorobogatova underlined that this initiative will eventually empower Russia to establish cross-border transactions with other countries that have implemented digital currencies.
The imperative to bolster its payment infrastructure arose for Moscow due to stringent Western sanctions, a response to its actions in Ukraine. These sanctions have effectively restricted Russia’s access to significant portions of the global financial system.
The digital rouble is slated for comprehensive introduction in 2025. In the coming year, the central bank intends to expand the participant list, as 19 additional banks express interest in joining the pilot program, Skorobogatova confirmed.
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