Russia is preparing to create its own central bank digital currency (CBDC), which could be ready for testing as soon as April.
Olga Skorobogatova, the first deputy governor of the Russian Central Bank, told the media that the bank intends to start testing the CBDC on April 1st, 2023.
Although the CBDC would strive for nationwide adoption, it will start with limited testing to encourage a dependable system.
“We plan to launch the digital ruble project on April 1, with transactions involving individual transfers as well as payments in trade and service enterprises.”
Although the Russian CBDC would have applications at the retail level, in the initial phase it will be put to the test by banks and business interests. Smaller businesses could eventually take part in the testing process.
The digital yuan, a CDBC, was initially tested by China, a significant economy. The digital yuan is still undergoing testing; however, it has not yet been used to replace the country’s previous form of money.
China has access to international money markets, but Russia has long been subject to Western sanctions. The establishment of a Russian CBDC may make international transfers simpler for the country.
Due to the fear of sanctions, the US is able to effectively control access to the SWIFT system, forcing Russia to develop its own transfer platform that is not used by American allies.
Russia is a significant producer of minerals, as well as oil and gas. The nation’s export markets were constrained by the sanctions, which increased inflation in a number of essential items including electricity.
Because that the payment aspect of energy transactions is frequently more complicated than delivery, CBDCs may be able to assist in resolving these types of trade bottlenecks.
