Digital ruble hits problems before launch

The planned April 1 pilot launch of the digital ruble did not go ahead due to the absence of a regulatory framework — the related bills for the instrument have only passed the first reading. Comnews reports, citing remarks by speakers at the Association of Russian Banks (ARB) congress.

Experts also pointed to a number of problems with the Russian CBDC. There was outrage over the central bank’s plan to charge corporates fees for operations with the digital ruble. At the same time, the exact amount of the fee has not been defined; it will not exceed that charged by the in the Faster Payments System.

In the absence of demand for the digital ruble, experts called the regulator’s move nonsensical.

They also noted that the security system for the new instrument is not yet ready. According to representatives of the Bank of Russia, anti-fraud measures are currently under development, and it is premature to say anything yet.

In January 2022 launch of the digital ruble platform prototype took place, with five banks participating. Together with the regulator they tested the asset’s issuance, opening of digital wallets, and transfers between citizens.

On 16 March, the State Duma approved in the first reading a package of bills to introduce the new instrument.

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

A more detailed regulatory framework will be developed by the central bank. In particular, the regulator will set tariffs for the platform operator’s services and the remuneration paid to its participants.