The Bank of Russia carries on its efforts for the upcoming adoption of the central bank digital currency (CBDC), aiming for an official digital ruble release in the upcoming years.

Specifically, as disclosed in the Bank of Russia’s most recent monetary policy update, the government will start to link all banks and credit institutions to the digital ruble platform beginning 2024. 

That would serve as a crucial year for Russia, with the nation sharing exceptions to organize presidential elections in March, and incumbent President Vladimir Putin has the constitutional right to get re-elected.

By that time, the central bank plans for the completion of “real money” customer-to-customer transaction pilots, along with the trial phases of customer-to-business and business-to-customer settlements.

In 2023, the Bank of Russia additionally has an intention of carrying out beta testing of digital ruble-based smart contracts for trades by a limited circle of participants.

The bank further shares its plan to finalize the CBDC introduction in a gradual fashion, opening up new different testings and features on a yearly basis. Right when the Federal Treasury is done with preparation, the digital ruble will also come with consumer-to-government, business-to-government, government-to-consumer and government-to-business payments, the Bank of Russia said.

The central bank also looks to release the offline mode for the digital ruble by 2025, as well as integration of non-bank financial intermediaries, financial platforms and exchange infrastructure.

“The phased process of introducing the digital ruble will provide market participants with the opportunity to adapt to new conditions,” the Bank of Russia noted.

The Bank of Russia will further aim to work with different central banks building their own digital currencies, to conduct cross-border and foreign exchange operations with digital currencies.