CBR confirms plans to start digital ruble pilot with real customers in Aug with view to scaling in 2025

MOSCOW. July 20 (Interfax) - The Central Bank of Russia (CBR) confirms its intention to begin a pilot project with digital rubles with real customers in August and plans to scale it starting in 2025, Central Bank chief Elvira Nabiullina said at a government meeting on Wednesday.

The Federation Council on Wednesday approved the bill to introduce the digital ruble. The State Duma passed the bill on July 11. Its main provisions go into effect on August 1.

The CBR also plans to begin a pilot project in August with 13 banks that has been postponed since April due to the absence of the necessary legal framework.

"In August we begin piloting with real digital rubles with the participation of the clients of this pilot group of banks," Nabiullina said.

"We really need this piloting in order to fine-tune the whole system, check its operational continuity...And only when we are sure that everything works smoothly will we make the decision on additional scaling of the digital ruble. By our estimate, this could happen starting in 2022," Nabiullina said.

Testing will begin with basic transactions and in 2024 it will be expanded to other transactions, she said. They include one-tap payments using NFC technology, transfers between legal entities and expanding the use of smart contracts with digital rubles.

In addition, the option for cross-border international collaboration was built into the digital ruble platform from the start, and the CBR is now holding negotiations with other countries on cooperation in this area, Nabiullina said.

"Two scenarios are possible here [for cross-border transactions]. The first is interaction between our platform and the platform of the national currency of another country. And the second is the creation of a common clearing center to which the digital currency platforms of various countries can connect. And we are now discussing both options with the countries that are willing to participate in this work with us," Nabiullina said.

She also recalled that transfers of digital rubles will be free of charge for individuals and the monthly limit for topping up wallets will be 300,000 rubles. For businesses, connecting to the digital ruble platform will mean a drop in acquiring commissions, to 0.3%, which is several times lower than current market rates.

The pilot with real digital rubles will be carried in a "friends and family" format, with a limited number of transactions and clients. Participants will test opening and closing digital wallets, topping them up and transfers between individuals, as well as paying for goods and services with digital rubles using QR codes. Thirty retail and service businesses in 11 cities previously selected by banks and the CBR will test out payments.