Central Bank debunks myths about the digital ruble

The Bank of Russia has published an FAQ on the digital ruble, in which it explained the principles behind the new financial instrument and the myths surrounding it.

In particular, the regulator denied that the introduction of CBDC would lead to its mandatory use and to the abolition of cash. Salaries of civil servants and pensions are also not planned to be mandatorily transferred to the digital ruble.

The new form of the national currency is not designed for total surveillance of citizens and their finances.

«The volume of information about citizens in digital-ruble transactions will not exceed the volume of information already established for transactions with non-cash rubles,» the Bank of Russia said.

Digital rubles do not expire and will not disappear if the electricity goes out.

A Russian citizen will have only one digital wallet, which will reside on the central bank’s platform. Access to it will be via the mobile app of the bank with which the user is a client.

Transfers of digital rubles are made by the recipient’s phone number, and payments for purchases are made using QR codes. To top up or withdraw digital rubles, they must first be transferred to a bank account.

There will be no cashback on digital-ruble transactions, nor will any interest accrue.

The prototype platform for the digital ruble was launched in January 2022 with the participation of five banks. Working with the regulator, they tested the issuance of the asset, opening of digital wallets, and transfers between citizens.

However, the planned April 1 pilot launch of the CBDC did not take place due to the lack of a regulatory framework — the related bill has only reached the first reading.

This document formalises the central bank’s status as operator of the digital ruble platform. The regulator will be responsible for safeguarding assets, organising and ensuring the CBDC’s operation.