Russia advances digital ruble distribution, mandating acceptance of Central Bank Digital Currency

The Bank of Russia has confirmed a mass rollout of its central bank digital currency (CBDC), the digital ruble, scheduled for July 2025. Elvira Nabiullina, the Governor of the Bank of Russia, made this announcement, setting a clear timeline for the implementation of the digital currency.

The digital ruble pilot, which started in 2021, has been expanding its scope. In January 2024, the second wave of banks was supposed to onboard to the pilot, but as of now, this has not occurred. The largest banks in Russia, including Sber, were among the second group of banks intended to join the pilot, but they are yet to be part of it. The second wave of 20 banks is still in the process of onboarding.

By July 2025, the largest banks will be obligated to support the digital ruble. This means they will have to open and top up digital ruble accounts, make transfers, and accept digital rubles. The participant limit for the digital ruble pilot has increased significantly, from 600 to 9,000. Similarly, the number of merchants participating in the pilot has grown from 22 to 1,200.

In September, the central bank relaxed some restrictions for the digital ruble pilot. The participant limit has increased from 600 to 9,000, and the number of merchants from 22 to 1,200. This expansion aims to provide a broader testing ground for the digital ruble, ensuring its smooth integration into the Russian financial system.

However, as of now, Russia's largest bank, Sber, is not part of the digital ruble pilot. No publicly available details specify the 20 banks that are planned to join the Digital Ruble pilot program of the Bank of Russia between January 2024 and July 2025.

The digital ruble rollout, set for July 2025, marks a significant step forward in Russia's digital economy. The implementation of the digital ruble will bring about a more efficient and secure financial system, paving the way for a more digitalised future.