Russia will launch tests of its own CBDC in April

The Russian central bank is preparing for the first launch of the digital ruble among consumers.

The Central Bank of the Russian Federation wants to launch tests of its own digital currency (CBDC) in April this year. The pilot is to be carried out in cooperation with 13 Russian banks. The digital ruble will be tested by real consumers, and this will include real transactions. However, these transactions will be subject to certain restrictions.

Russia will launch tests of its own CBDC

The Central Bank of the Russian Federation is preparing for the first consumer pilot for its own digital currency. It is to be launched on April 1 this year. Tests of the Russian cryptocurrency will be carried out in cooperation with 13 local banks.

Transactions will be carried out in the real world with real CBDC users. However, transactions will be subject to a limited volume. Exactly the same will happen in terms of the number of consumers participating in the aforementioned test.

“We plan to launch the digital ruble project on April 1, with transactions involving single transfers as well as payments in commercial and service enterprises,” said Olga Skorobogatova, a member of the Board of Directors of the Bank of Russia.

According to local media reports, the banks that are to be involved in the digital ruble tests have confirmed their readiness in terms of technological capabilities. Only selected customers will be involved in the first stage of the Russian CBDC pilot.

An alternative to the SWIFT payment system

After the completion of the first tests, the central bank of Russia intends to draw the most crucial conclusions about the digital ruble. Current actions are in line with the plan presented by this financial institution as early as June 2022.

Initially, the CBDC pilot was planned for 2024. However, the efforts of the Russian central bank were accelerated due to Russia's search for an alternative to the SWIFT payment system. The country was subject to extremely heavy Western economic sanctions due to its armed attack on independent Ukraine.

Although the Russian central bank is not a cryptocurrency enthusiast, it has a completely different attitude towards its own digital currency. An important factor for this institution is, in particular, the possibility of making cross-border payments. Publicly available data indicate that Russia's central bank also considered issuing a digital token with a value pegged to gold. It would be both a new investment product and a means of international settlements used by the Russian Federation.