Trial for digital ruble has begun by The Bank of Russia

The Bank of Russia reports on the planned first digital ruble tests but continues to fight Bitcoin adoption.

In the midst of reports that the Bank of Russia has rejected the Finance Ministry’s proposal for cryptocurrency regulation, the central bank has begun testing its own digital currency.

The Bank of Russia announced Tuesday that the Russian central bank has officially launched the digital ruble trial, successfully completing the first central bank digital currency (CBDC) transfers among citizens. The launch is timed to coincide with the bank’s plans to launch the first digital ruble transactions in early 2022.

Three banks out of the 12 in the digital ruble pilot group have already integrated the CBDC platform, with two of them completing a “full cycle of digital ruble transfers between clients using mobile banking applications,” according to the bank.

Phase I

Users will be able to open wallets on the digital ruble platform via a mobile application in the first stage of testing, as well as convert non-cash fiat into CBDC and transact using the latter tokens.

Phase II

In the second phase, the bank intends to test digital ruble as a payment method for goods and services, as well as other potential smart contract and interaction with the Federal Treasury implementations. The central bank also intends to introduce digital ruble payments in offline mode and to allow non-resident customers to conduct transactions in the future, according to the announcement.

The digital ruble

According to Olga Skorobogatova, the first deputy governor of the Bank of Russia, is a “new opportunity for citizens, businesses, and the state,” adding that such transactions will be free and available in any region of the country. The Bank of Russia also stated that the digital ruble will be distinct in that it will be accessible through a “mobile application of any bank that serves the client.”

The announcement by the Bank of Russia comes amid local reports that the bank has officially opposed the finance ministry’s crypto-friendly regulation concept, which was introduced on February 8.

In a press conference on February 11, Bank of Russia Governor Elvira Nabiullina stated that the authority will continue to fight crypto adoption in Russia through all means, stating:

“Because we see significant risks, we will make every effort to persuade the government and go into greater detail about our arguments.” “I’m going to rely on common sense here.”

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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