Russia’s leading bank, Sberbank, is gearing up to introduce operations with the nation’s central bank digital currency (CBDC), commonly referred to as the digital ruble, for its clients. The bank is looking to have the operations in place by the beginning of 2025, according to the bank’s deputy CEO Anatoly Popov. Sberbank is one of several Russian banks that are set to participate in the second phase of testing the CBDC, alongside roughly 20 other institutions.
The digital ruble prototype was designed by Russia’s central bank in December 2021 and testing started in 2022. Test transactions involving employees and customers from 13 banks had been conducted by August 2023 as part of a pilot program. The pilot program’s scope was expanded by the central bank this month, resulting in a notable increase in participation from the previous 22 companies and 600 people to 1,200 companies and 9,000 people respectively.
In July, the central bank hinted that the digital currency could be accessible for wider use by July next year. It stated that the currency is meant to complement, not replace, existing forms of non-cash and cash rubles.
Russia’s efforts in digital currency have been influenced by China, which has been a key reference point in this area. In China, the digital yuan has already been integrated into the payment of state salaries in Changshu, helping to drive the adoption of the CBDC. Additionally, China has taken a leading role in the mBridge initiative, a cross-border CBDC project where it serves as the software developer. There is also ongoing discussion about a potential BRICS Bridge initiative in which both Russia and China, as BRICS members, would participate.
These developments come amid reports that Russia’s central bank is considering altering the current financial regulatory structure to create a new class of eligible investors who would be permitted to trade crypto. The Bank’s deputy governor, Alexey Guznov, stated that talks are underway to allow a limited number of accredited investors purchase and sell virtual currencies. He did, however, emphasize that before implementing this approach, a comprehensive risk assessment should be carried out.
In a related move, the government intends to launch two new crypto exchanges, concentrating on stablecoins — especially those linked to the BRICS currencies. The exchanges will be located in St. Petersburg and Moscow. While the Moscow Exchange’s structure is still being considered, the St. Petersburg Exchange will be based on the St. Petersburg International Mercantile Exchange’s infrastructure.
The measures that Russia is taking to deepen the use of cryptos are something that the broader industry, including companies such as BitFuFu Inc. (NASDAQ: FUFU), are bound to applaud since they confirm that cryptos can play a bigger role in the economies of different countries.
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