Russia to pilot digital ruble with 13 banks next week

Russia's central bank is set to start real-world tests of its digital ruble with 13 banks and a limited circle of their clients next week, according to a release dated Wednesday. The first phase of piloting the central bank digital currency will focus on digital wallets, transfers between citizens, simple automated payments and purchases and services using a QR code. Those participating in the pilot will have the ability to pay with digital rubles at 30 retail outlets located in 11 Russian cities, the Bank of Russia said. The list of pilot participants is expected be expanded by the end of 2023 by attracting both citizens and companies. “The launch of pilot operations with real digital rubles is the most important stage of the project. This will allow us to test the operation of the digital ruble platform already in an industrial environment, work out all the necessary procedures with the involvement of clients, adjust processes, if necessary, and make sure that the client path is convenient and understandable for users." By 2025, citizens and businesses are expected to be able to use the digital ruble "at their own request." VTB Bank, Bank GPB, QIWI Bank, Promsvyazbank, Sovcombank and Bank Sinara are among the lenders participating in the digital ruble pilot . A CBDC is a form of digital currency issued by a country's central bank instead of a commercial bank. Their value is pegged to the country's fiat currency. Russia, which is heavily sanctioned by the U.S. and Europe after invading Ukraine, seeks to push ahead with its electronic currency as a way to doge restrictive financial policies. More on Russia and CBDCs: Russia's central bank to roll out digital ruble pilot in April BNP Paribas to promote CBDC use by linking digital yuan to bank accounts - report CBDCs are the future of money, payments as most of globe explores them: BofA Japan's central bank to conduct CBDC experiments with three banking giants - report