Russian Ministry Urges Delay in Digital Ruble Launch

Russian retail networks require a two-year transition period to prepare for operations with the digital ruble, according to the Ministry of Industry and Trade’s response to a bill on initiating transactions in the national currency, reports Izvestia.

The ministry believes the timelines set by the regulator are “excessively swift” and pose risks to trade.

“It is currently impossible to adequately assess these risks, as the rules for the operation and functioning of the digital ruble are still lacking,” added officials from the Ministry of Industry and Trade.

Delaying the launch of Russia’s CBDC by two years would allow businesses to streamline processes:

• refine software;
• make changes to information systems;
• conduct test trials;
• train personnel.

One of the bill’s authors, Anatoly Aksakov, head of the State Duma’s Financial Market Committee, expressed readiness to discuss the ministry’s position. However, citing the results of a pilot project, he noted that none of the 21,000 participating retail outlets “encountered any difficulties” during testing.

According to Aksakov, Russians are already showing interest in the new payment method. This, however, contradicts the results of a VCIOM survey conducted in August.

The law on the national digital currency came into effect on August 1, 2023. The Central Bank of Russia has outlined requirements for banks regarding the information security of digital ruble transactions and established tariffs for them.

Earlier, the regulator received a proposal from the Association of Russian Banks to develop a unified mobile application for digital ruble transactions to reduce infrastructure costs for the new national currency.

According to expert estimates, commercial banks will need investments ranging from 120 million to over 200 million rubles to connect to the national digital currency platform.