## Bank of Russia Delays Digital Ruble Launch
Elvira Nabiullina, the governor of the Bank of Russia, has announced a postponement of the digital ruble’s release, which was initially set for this summer. The new timeline remains uncertain. “We continue to receive questions about delays in the widespread introduction of the digital ruble,” Nabiullina stated. She noted that the pilot testing phase has been successful, involving 1,700 participants, 15 banks, and 30 companies. However, she acknowledged the need for further consultations with banks to determine the most suitable economic model for customers before proceeding with the rollout.
The Bank of Russia initiated this project in response to banks’ strong interest in smart contracts, which are intended to be a key feature of the Central Bank Digital Currency (CBDC) initiative. Nabiullina shared the news of the delay with the Association of Russian Banks (ASROS) and provided an update on the positive outcomes from the pilot tests conducted so far. “Therefore, our intention,” Nabiullina explained, “is to move to the mass introduction of the digital ruble a little later than originally planned, specifically after we finalize all the details in the pilot and consult with banks on the economic model that is most appealing to their customers—both businesses and individuals.”
The digital ruble is designed to function as a fully operational Central Bank Digital Currency (CBDC), complementing cash and digital payments while offering reliable services without the need for interest or lending rates. The Banking Association has estimated that the cost for a bank to adopt the digital currency would be around $1.1 million. To assist smaller banks, the central bank will offer additional support, including free technical assistance.
“For those components that are mandatory,” wrote Zulfiya Kakhrumanova, Deputy Governor of the Bank of Russia, “from the perspective of information security, we provide these solutions to banks at no cost. This software module for integration is created and delivered to organizations in three different formats, allowing banks to select the most suitable option for their needs.” She added, “We also provide free cryptographic information protection tools for subordinate certification centers established by banks, which represents a significant cost-saving for them.”
The digital ruble also enables Russia to facilitate international payments while reducing reliance on Western infrastructure. It serves as an alternative to the SWIFT payment system, allowing Russia and other nations to maintain business operations despite Western sanctions. Given Russia’s strong focus on finding alternatives to SWIFT and enhancing BRICS business, the reasons behind the digital ruble’s delay raise questions. The expansion of CBDCs could enable bypassing the SWIFT international standard, potentially diminishing the dollar’s status as a widely accepted medium of exchange. Currently, SWIFT is utilized to impose sanctions on entire nations, facing minimal competition in the global financial landscape.
