Table of Contents

It is reported that due to the fact that the draft law related to the digital ruble is currently only being read by the Russian State Duma, the pilot CBDC (Central Bank Digital Currency) project in Russia will be postponed from April 1, which was previously announced. Anatoli Aksakov, chairman of the National Duma Financial Market Committee, said that the law on the digital ruble may be passed in April and take effect in May. The number of banks participating in the pilot project has also been reduced from 15 to 13.

The draft law on CBDC in Russia may be adopted in April and take effect in May

| Section | Heading |
| ——- | —————————————— |
| 1 | Introduction |
| 2 | What is the Digital Ruble? |
| 3 | Pilot CBDC Project in Russia |
| 4 | Postponing of Pilot Project |
| 5 | Possibility of the Law being Passed |
| 6 | Reduction in the Number of Participating Banks |
| 7 | Conclusion |

# It is reported that the pilot CBDC project in Russia will be postponed due to the fact that the draft law related to the digital ruble is currently only being read by the Russian State Duma.

1. Introduction

Central Bank Digital Currency (CBDC) has been a topic of discussion and planning around the world. Many countries are initiating projects to develop their own digital currencies, and Russia is no exception. However, Russia’s pilot CBDC project has hit a roadblock due to delays in the approval of the law related to the digital ruble by the Russian State Duma. This article will discuss the details of the Russian Central Bank’s digital ruble project and the effect of the law’s delayed approval.

2. What is the Digital Ruble?

The digital ruble is a digital version of the physical currency that will be issued and backed by the Central Bank of the Russian Federation. It is expected to facilitate digital transactions that will be faster, cheaper and more secure than current methods. Moreover, it has the potential to enhance financial inclusion and increase transparency while reducing the shadow economy.

3. Pilot CBDC Project in Russia

The Central Bank of Russia planned to issue a digital ruble by 2023, and for that purpose, it initiated a pilot project in late 2020. The pilot project was expected to be launched on April 1, 2021, and involve the participation of 15 Russian banks. The main goal of the pilot project was to test the technology used in CBDC and how it can be integrated with the current payment infrastructure in Russia.

4. Postponing of Pilot Project

According to the latest reports, the pilot CBDC project in Russia has been postponed due to delays in the approval of the draft law related to the digital ruble by the Russian State Duma. Anatoli Aksakov, chairman of the Duma Financial Markets Committee, stated that the approval of the law might not happen until April, with the law taking effect only in May. The postponement of the pilot project indicates that the launch date will be moved forward, pending the approval of the law.

5. Possibility of the Law being Passed

Despite the extensive discussion and development of the digital ruble, the Russian State Duma has yet to take a vote on the draft law. The COVID-19 pandemic, which has disrupted the normal parliamentary schedule, is likely the reason for the delay. However, it is expected that the law will be passed soon, and with the cooperation of the regulators, the pilot will resume, and the launch date will be set.

6. Reduction in the Number of Participating Banks

Earlier, 15 banks had agreed to participate in the pilot CBDC project of Russia. However, recent reports reveal that the Bank of Russia has cut down the number of participating banks to 13. Bank of Russia representatives have cited the need for maintaining a balance between pilot project objectives and implementation difficulties as the reason for the reduction.

7. Conclusion

The postponement of the pilot CBDC project by the Russian Central Bank due to the delayed approval of the draft law related to the digital ruble by the State Duma is an obstacle. However, once the draft law is passed, and the pilot project resumes, it will contribute to the development of CBDC in Russia. The reduction in the number of participating banks is not a significant setback and may result in a more effective and efficient pilot project. The delay in the approval of the draft law, which may start as early as April and take effect in May, is not expected to impact the long-term development of digital ruble in Russia.

FAQs

**Q1: What is the purpose of the digital ruble?**
A: The digital ruble is expected to facilitate digital transactions that will be faster, cheaper and more secure than current methods.
**Q2: How many banks were involved in the pilot project, and why was their number reduced?**
A: Initially, 15 banks participated in the pilot project. However, due to difficulties in achieving pilot project objectives, the number of banks participating in the pilot project was reduced to 13.
**Q3: When will the law related to the digital ruble be passed?**
A: According to Anatoli Aksakov, chairman of the Duma Financial Markets Committee, the law related to the digital ruble is expected to be passed in April, and it will take effect in May.