The Bank of Russia (BoR) has announced its intention to initiate pilot testing for the country’s central bank digital currency (CBDC), the digital ruble, starting on August 15. This significant step will involve 13 banks and a select group of their customers.

Olga Skorobogatova, the first deputy governor of the Bank of Russia, described this phase as a crucial part of the project. The pilot operations will allow the bank to assess the digital ruble platform’s functionality in a real-world environment, refine essential procedures, make potential adjustments, and ensure a user-friendly experience.

The bank’s long-term strategy aims to make the digital ruble widely available, depending on the results of the phased testing. Skorobogatova expressed that by 2025, the national digital currency could be actively used by both individuals and businesses.

The initial phase of the pilot will concentrate on developing fundamental processes such as creating and funding digital ruble accounts, facilitating transactions between individuals, enabling simple automated payments, and using QR codes for various transactions.

Participants in the pilot will be able to use digital rubles at 30 retail locations across 11 Russian cities. The plan is to expand the list of participants to include more individuals and businesses by the end of 2023.

In 2024, the range of transactions will be expanded, including additional payment scenarios using dynamic QR codes and facilitating transfers between legal entities. The templates for simple automated payments will also be broadened.

The digital ruble’s pilot launch had been delayed due to legislative challenges, with the legislation only advancing through the initial reading in the State Duma, the lower chamber of the Federal Assembly. However, the project moved forward after President Vladimir Putin signed the digital ruble legislation on July 24, paving the way for Russia’s CBDC initiative.