A year ago, the Bank of Russia set July 2025 as the date for the first launch phase of its digital ruble central bank digital currency (CBDC). Now the central bank is delaying the roll out. It follows resistance from merchants, a major banking association, and its largest bank, Sber.
The big bank was excluded from the first wave of banks involved in the pilot, so it only joined this January, a year later than planned. Perhaps its inclusion was delayed to avoid it dominating trials, but that’s speculation. The reality is that six months from the first pilot to launch is rather short for a bank.
Central Bank Governor Elvira Nabiullina announced the delay at a meeting with the Association of Russian Banks (ASROS). However, she said that the pilots are progressing well.
“Our intention is to move on to the mass implementation of the digital ruble somewhat later than originally planned, namely after we have worked out all the details in the pilot and held consultations with banks on the economic model that is most attractive to their clients – for businesses, for people,” the Governor said, as reported by the Association.
The central bank first shared details about the planned business model late last year.
A new schedule has not yet been set, and the central bank did not mention the delay on its website. However, the launch postponement was also reported by the Interfax news agency.
Digital ruble: addressing bank concerns
When banks raised their concerns in the State Duma in December, they highlighted several issues. The main ones were worries about deposit outflows and the costs of implementation.
On the first point, from the start the central bank has appeared unconcerned about this impact. This may be partly because it plans a three phase rollout. Initially larger banks and merchants will join, followed by other banks and mid-sized merchants. The final phase will require non bank providers and all merchants to participate, but that will be two years later.
Regarding the expense, the banking association estimated the cost to a bank could be up to Rubles 100 million ($1.1m). The central bank says it will provide some technical elements to banks free of charge, to help smaller banks.
“For those components that are mandatory from the point of view of information security, we (will) provide these solutions to banks free of charge. This software module for embedding is created and transferred to organizations, and in three different forms, so that banks can choose the most optimal one for their landscape,” said Deputy Governor of the Bank of Russia, Zulfiya Kakhrumanova.
“We provide free cryptographic information protection tools for subordinate certification centers that are deployed by banks, and this is also a significant cost aspect for banks,” she added, according to Interfax.
