Russia to promote the use of 'digital ruble' in international transactions

16-09-2022

Testing with customers and actual operations is scheduled to begin in April 2023.

The Central Bank of Russia (CBR) announced on Thursday that it will promote the use of the digital ruble, currently being tested, in international transactions.

Speaking to Russian public television, Governor Elvira Nabiulina said that the central bank will "actively promote the possibility of using the digital ruble in international transactions."

The supervisor of the Russian banking system created "from the beginning a prototype, a model, which can be linked to other monetary systems," Nabiulina explained, cautioning, however, that "as with the Financial Message Transfer System and in the case of the MIR bank card, counterparty acceptance is required."

The prototype of the digital ruble platform was created in December 2021 and testing, which will be carried out in several stages, began in February this year at 12 Russian banks.

In the first stage, it is planned to connect credit institutions to the platform and enable transfers between private customers.

In the second stage, the Federal Treasury will be connected to the platform and the "issuance of smart contracts and transactions between individuals and companies and the state" will begin.

The start of testing with clients and real operations is planned for April 2023. According to Governor Nabiulina, banks "are interested in this experiment."

"It will last until the beginning of next year, when we will start carrying out certain types of limited operations, and then we will start its gradual implementation," she continued.

The Central Bank of Russia had already anticipated that foreign exchange transactions from digital rubles to foreign currencies would begin from 2024, in addition to the creation of portfolios for non-resident customers.

Source: Jornal de Negócios