Russian banks are preparing to expand the digital national currency pilot. Photo: freepik.com.
NEW TREND
In recent years, cryptocurrencies have attracted widespread attention as a new type of asset and tool for decentralized financial transactions. In the context of the technological boom, central banks in developed and developing countries are considering applying the latest discovery on a national scale. For example, by 2024, more than 130 countries have already announced the research and development of a national digital currency: central bank digital money (CBDC). Several developing countries already have experience in introducing digital currency with varying degrees of success. In 2024, the market for these coins is estimated at 100 million US dollars and in 2030 its volume is expected to multiply by 2,130. The project to introduce the digital yuan has been advancing at an accelerated pace for several years in China, where pilot tests have given way to the stage of expansion into real life.
The development of the digital ruble by the Bank of Russia began in 2020. The number of participants in the process increased: in 2024, RosDorBank joined the pilot project to test the digital ruble. According to Olga Skorobogatova, First Vice President of the Bank of Russia, in the first stage of the pilot test, basic operations will be developed: opening and replenishment of accounts in digital rubles (digital wallets), transfers of digital rubles between citizens, simple automatic payments, as well as well as payment for purchases and services via QR code. Pilot participants will be able to pay with digital rubles at 30 points of sale located in 11 Russian cities.
– In the next stage, the list of operations will be complemented by a payment scenario using a dynamic QR code, transfers between legal entities. In addition, templates for simple automatic payments will be expanded,” added Olga Skorobogatova.
HOW DOES IT WORK
Our country was one of the first to decide to launch a third form of national currency, the principle of transaction with the digital ruble is based on distributed ledger technology. This is a phenomenon that combines the capabilities of digitalization and traditional financial instruments. The idea is that data is recorded in a decentralized way. The most popular of them, the blockchain, is a record of blocks containing information about a transaction (money transactions) on a network of independent devices (computers, servers). The network does not have a single center and data confirmation is carried out by anonymous participants unknown to each other, which guarantees the continuity and reliability of the processes. Now the focus group participants are testing a digital national currency.
– Participation in the project at a pilot level allows you to experience from within all the stages of the introduction of a new form of currency, to become a participant in a breakthrough in the development of Russian fintech at the state level. We can already say that the initial parameters of the architecture are undergoing changes. Participating banks are subject to new additional requirements, for example, it is necessary to develop and integrate their information systems with the Digital Ruble Platform, which requires a significant investment of time and resources. It is also necessary to ensure security and compliance with the regulator’s requirements, train its staff to work with the digital ruble and organize customer support on issues related to its use, says Alexey Vinogradov, First Deputy Chairman of the Board of Directors of RosDorBank. , participant in the Digital Ruble 2 circuit testing project.
All main functions of the Digital Ruble Platform are being tested, including interbank transfers, payment for goods and services, as well as the conversion of digital rubles into cash and non-cash. The Bank of Russia analyzes the test results and makes the necessary improvements to the Digital Ruble Platform.
The latest regulatory requirements for waves 1 and 2 banks can be divided into several areas: infrastructure, security requirements, reporting, and customer interaction requirements. This is exactly what RosDorBank is working on today.
At the same time, most of the parameters that the Bank of Russia tests are confidential information and are not subject to public discussion for security reasons.
FUTURE PLANS
The digital ruble is the third form of money, along with cash and non-cash. Payments with this currency are currently undergoing limited testing at several banks, and large-scale implementation of the digital currency should take place in 2025. Of course, if the tests go well. According to Russian Finance Minister Anton Siluanov, the digital ruble is primarily important in those industries where it is necessary to ensure the targeted use of budget money.
“These include certain social payments for citizens, certain subsidies that are allocated for the purchase or provision of certain services,” Anton Siluanov clarified.
Using digital currency will be convenient and profitable: the digital ruble will make payments faster and easier.
– Transactions in digital rubles will be free for citizens. Financial services will be available to more people, especially in remote and hard-to-reach areas. For companies, especially small and medium-sized ones, payments in digital rubles will mean lower payment costs, says Anatoly Aksakov, head of the Financial Market Committee of the State Duma.
And, of course, the issue of safety is carefully considered. The security of digital rubles held in individual customer accounts (in digital wallets) is guaranteed by the Central Bank. And this, by definition, is the most secure way to store funds. Commercial banks are mere financial intermediaries that provide access to digital wallets through their applications. None of the commercial banks participating in the tests are platforms for storing digital rubles.
