The launch of the central bank digital currency (CBDC) pilot projectfor its acronym in English) of the Bank of Russia is delayed indefinitely. However, the participating banks have expressed their willingness to start the tests.
As reported by the state agency TASS on March 28, the CBDC pilot will not start on April 1, as announced, because the specific legislation has only passed the first reading in the State Duma, the lower house of the Federal Assembly. According to TASS, the legislation could be enacted as early as May.
The number of private banks participating in the pilot project has also changed, from 15 to 13. Some of the banks’ employees would become the test participants for retail CBDC payments, as well as one of the largest insurance companies in the country, Ingosstrakh..
Bank executives expressed enthusiasm for the project. Sinara Bank’s director of innovations, Vitaly Kopysov, told reporters:
“The use of smart contracts should reduce the operational burden on banks and make deals transparent, which will not only reduce the chances of government and bank embezzlement, but ultimately simplify control.” on existing contracts.
The next pilot project will involve real operations and consumersalthough its scale will be limited. The general public will not be able to participate in the first phase, as banks will enter the pilot with selected clients. Following the first phase, the Bank of Russia intends to determine how to scale up the digital ruble.
Initially scheduled for 2024, the consumer CBDC pilot was moved to an earlier date, as the russian central bank was looking for an alternative to the SWIFT payment system amid Western economic sanctions against Russia.
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