Digital ruble

Main article: National cryptocurrencies

2024

Start of the second phase of the pilot project

In mid-October 2024, it became known about the beginning of the second stage of the pilot project on the use of the digital ruble. It was joined by 12 banks, and three more credit organizations will connect in the near future. This was told by the first deputy chairman of the Bank of Russia Olga Skorobogatova.

Next year, we expect about 14-15 more banks, which in general, if we talk about their market share, will make it possible to cover about 80% of all customers who use financial services with digital ruble services, Skorobogatova said, speaking at one of the financial technology forums on October 17, 2024.

The second stage of the pilot project on the use of the digital ruble has started in Russia

The following systemically important credit institutions participate in the second stage of the pilot project on the use of the digital ruble:,,,,,, and Alfa-Bank VTB Promsvyazbank Rosbank Gazprombank. Sovcombank Sberbank Rosselkhozbank Thus, T-Bank out of 13 systemically important banks, they have not yet announced their intention to connect to the platform (ICD Otkritie Bank merging with VTB), as well as two Russian subsidiaries of foreign banks - and, notes Unicredit Bank. Raiffeisen Bank Interfax

According to the head of the Central Bank Elvira Nabiullina in mid-October 2024, the regulator plans to fine systemically important credit institutions that will not be able to provide customers with access to operations with a digital ruble by July 1, 2025.

For the digital ruble, we plan to start a large-scale implementation, we aim at this in the middle of next year, but for this the pilot stage must end successfully. And we will move on to mass implementation only when we are sure that everything works as it should, "she added.

Banks with a universal license are given more time to finalize their systems - until July 1, 2026, and other credit institutions - until July 1, 2027.^[1]

The Central Bank expanded the pilot on the digital ruble. Transfers between companies and citizens, payment for goods and services are now available

Central Bank Russia expanded the pilot project for the introduction of digital. From September ruble 1, 2024, it will include new opportunities, such as transfers between companies and citizens, as well as payment for goods and services. As part of the expansion of the project, the total number of participants will increase significantly: the number of individuals will increase from 600 to 9 thousand, and the number of companies - from 22 to 1200. The regulator spoke about this on August 30, 2024.

Operations with a digital ruble will continue to be available to customers of the same 12 banks that have been involved in piloting since its launch in August 2023. Among the new transactions available for testing will be payment using a dynamic QR code and transfers between companies. These features will complement existing capabilities, including opening, closing and replenishing digital ruble accounts, transfers between citizens, payment for goods and services, as well as auto payments based on smart contracts.

The pilot for the digital ruble will expand with the previous number of participating banks

Over the year since the start of the pilot project, participants conducted almost 40 thousand operations using the digital ruble, including 30 thousand transfers between citizens and 9 thousand payments for goods and services. Of these operations, 4,000 were carried out using smart contracts, which emphasizes the demand and effectiveness of the new digital currency.

Another 19 banks are expected to join the pilot's second phase. According to the agency, among the credit institutions that have already concluded an agreement with the Central Bank and are now configuring their systems for connection, there are such large players as,,, bank Sberbank TBank (formerly Tinkoff Bank) RSHB",," Russian standard Novikombank bank "," Point as well as banks "Center-invest" "Kuban-credit" others. The pilot^[2]

How the digital ruble is developing in Russia. Milestones

In early July 2024, the Central Bank of the Russian Federation announced the expansion of testing of the digital ruble. the pilot will be expanded to 9 thousand individuals and 1.2 thousand legal entities.

We are expanding our pilot on real operations from September 1. Let me remind you that now there are 12 banks, 19 we have at the connection stage. We want to significantly, tenfold, increase the number of individuals and legal entities that will participate in the pilot, - said the first deputy chairman of the Central Bank Olga Skorobogatova in early July 2024.

According to her, the regulator has a huge number of applications and wishes from citizens and businesses through banks that want to use the digital ruble and "very much require the expansion of the project to all banks and to a large number of participants." Skorobogatova believes that the digital ruble will develop very actively in the second half of 2024 and in 2025.

The first deputy chairman of the Central Bank added that the Central Bank is also working on the possibility of testing settlements using the digital ruble with some countries. Which countries are in question, she did not specify. According to Skorobogatova, it is too early to say the timing of the implementation of such plans.

In early June 2024, the mayor Moscow Sergei Sobyanin and Olga Skorobogatova signed an agreement on cooperation on the development of the digital ruble platform. After the massive introduction of the national digital currency, passengers will be able to pay for travel, parking and other Moscow services in this way. transport

The digital ruble should become the third form of money along with cash and non-cash rubles. The issuer of the digital ruble, which will be issued in the form of a digital code and stored on a special platform, will be the Bank of Russia. Commercial banks will get the role of intermediaries between the regulator and users.

The first schemes of fraud with a digital ruble appeared in Russia

On July 4, 2024, it became known that the first fraud schemes with a digital ruble appeared in Russia, despite the fact that the new form of the national currency had not yet entered circulation. Attackers are already actively using various methods to gain access to personal data and financial resources of citizens under the pretext of transactions with a digital ruble.

Anton Nemkin, a member of the State Duma Committee on Information Policy, warned of several types of fraudulent schemes related to the digital ruble. Among them - sending fake messages and emails imitating official notifications from banks, with a proposal to follow the link and enter data to access the digital ruble.

It became known about the appearance in Russia of the first fraud schemes with a digital ruble

Another common method is to create fake applications and websites masquerading as official platforms for working with the digital ruble. Users, entering their data on such resources, risk transferring them to scammers.

In addition, attackers offer citizens "investment opportunities" using the digital ruble, promising high profits. As a result, gullible users may lose their attachments.

The situation is complicated by the low level of awareness of the population about the digital ruble. According to polls, more than 30% of Russians do not know about the emergence of a new form of the national currency, and 35% do not understand its purpose.

Anton Nemkin noted: This is a very sad indicator, given the fact that the Bank of Russia intends to introduce digital currency into mass circulation after the completion of its testing - already in 2025.

To protect against fraud, experts recommend that citizens be vigilant, follow news about deception methods, use two-factor authentication and verify the authenticity of all messages and offers related to the digital ruble.^[3]

Researchers: The digital ruble will bring hundreds of billions of annual benefits to both business and banks

The digital ruble will bring hundreds of billions of annual benefits to both business and banks. Researchers at Jacob and Partners and Central University are sure of this. Their analysts calculated ^[4], that only the effect of simplifying cross-border transfers due to the development of a third form of money can reach 103 billion rubles a year.

In general, with the active introduction of digital ruble CENTRAL BANK and, banks the total effect can be more than 300 billion annually. Among the main advantages, in addition to simplifying transfers without using, SWIFT are a decrease in the commission for (acquiring primarily for), retails the introduction of new products, and management optimization. finance

As one of the authors^[5] Partners report^[6]Ivaninsky, director of the center for business education and analytics at Central University, ^[7] ruble in Russia, and each of them creates a significant effect for the Russian economy.

However, experts stipulate that a lot of work will have to be done to obtain numerous benefits: to develop and optimize client paths, make changes to regulatory methods and conduct a large-scale information campaign to overcome skepticism about the digital ruble^[8]of^[9]

2023

The costs of one bank for the introduction of the digital ruble are estimated at 300 million rubles

The costs of one bank for the introduction of a digital ruble may amount to 200-300 million rubles. This assessment was announced in mid-February 2024 by Yakov & Partners (a former Russian subsidiary of McKinsey).

According to Interfax, citing this study, one of the banks participating in the pilot project of the digital ruble had already invested 150 million rubles by mid-February 2024. Basically, the funds went to build information security and create a gateway with the Central Bank. The name of the credit institution is not specified. It was noted that for "larger" banks, costs can increase several times.

The costs of one bank for the introduction of a digital ruble may amount to 200-300 million rubles

According to experts from Yakov & Partners, in general, the costs of the banking industry for the introduction of the digital ruble may amount to 30-50 billion rubles. We are talking about the costs of cybersecurity, new equipment and software, as well as new business scenarios and personnel.

Between 100 and 200 credit institutions are expected to take part in the project. At the same time, the economic effect of the introduction of a digital ruble for banks may range from 17 to 61 billion rubles, researchers predict.

In their opinion, business can receive an economic benefit of 50-60 billion rubles a year by reducing acquiring fees. With payments in digital rubles, the tariff will be 0.3%, while the commission on card transactions averages 1.5-2.5%. If retail will also actively popularize the digital ruble, as currently payments using the Fast Payment System (FPS), then the volume of payments with a digital ruble in retail can reach about 4 trillion rubles a year for the third or fifth year after launch, the authors of the study calculated.

It is also expected that about 5-10 billion rubles a year banks will be able to save by cheaper attracting customers from the small and medium-sized business segment.^[10]

Central Bank introduced a special type of accounts for the digital ruble

The Central Bank of Russia has introduced a special account for the digital ruble. The regulator announced this at the end of January 2024.

According to the instructions of the Central Bank, a special account of type "305" for the digital ruble has been introduced into the chart of accounts of credit institutions. It is noted that the purpose of this account is to record digital rubles on the account of the digital ruble of a credit institution opened by the operator of the digital ruble platform. At the same time, the procedure for maintaining analytical accounting will be determined by the credit institution on its own.

Central Bank introduced a special account for the digital ruble

At the end of January 2024, the Central Bank also announced the accession of another 17 banks to the pilot project of the digital ruble. Credit institutions that signed the agreement included:

• Bank "Russia";
• Orenburg Bank;
• "Russian Standard,"
• SME Bank;
• Rosselkhozbank;
• Tinkoff Bank;
• Expobank;
• Novikombank;
• RRF;
• "Kuban Credit";
• Tochka Bank;
• Primterkombank;
• RosDorBank;
• Sberbank;
• Center-Invest;
• RNKB
• "Money.Mail.Ru."

These banks set up their systems to enter the digital ruble pilot when it is expanded. By the end of January 2024, 13 banks, about 600 citizens, as well as almost 30 trading and service companies, take part in testing operations with real digital rubles, the Central Bank said.

On January 24, 2024, the Bank of Russia announced plans to open customer support phones on the use of the digital ruble. According to Kommersant, interested companies are invited to send proposals on the cost of performing work on the creation of a multi-channel digital complex for registering telephone conversations, organizing the reception of calls, recording them, using and storing records as part of the launch of the first line of support for Bank of Russia clients.^[11]

The Central Bank published requirements for the safety of participants in the digital ruble

At the end of 2023, the Central Bank of the Russian Federation published on its official portal regulation No. 833-P "On Requirements for Ensuring Information Protection for Participants of the Digital Ruble Platform" On Requirements for Ensuring Information Protection for Participants of the Digital^[12], which formulates information security requirements for financial organizations and application developers who are going to connect to the digital ruble platform. The requirements apply to automated systems, software, computer equipment and telecommunications equipment that are involved in working with digital rubles.

The provision defines the following categories of information that must be protected in the process of working with digital rubles:

information contained in documents drawn up during operations with digital rubles formed by platform participants, users of the digital ruble platform and the operator of the digital ruble platform; information necessary for identification, authentication and authorization of users of the digital ruble platform when performing actions in order to carry out operations with digital rubles; information on the provision, suspension, renewal or termination of access to the digital ruble platform, on the digital ruble account, on the balance of digital rubles in the digital ruble account, as well as on transactions with digital rubles; information on executed and planned transactions containing the conditions provided for in Part 2 of Article 309 of the Civil Code of the Russian Federation; key information of CIPF used to provide cryptographic protection of operations with digital rubles (hereinafter referred to as cryptographic keys); configuration information that defines the parameters of operation of information infrastructure objects, as well as configuration information that determines the parameters of operation of technical means of information protection.

The regulation also defines the main instruments for monitoring the digital ruble platform: PKI and the digital fingerprint of the device (DCO). At the same time, the responsibility for the use of cryptographic means is assigned to the participants of the digital ruble platform, that is, banks and payment systems. In particular, for protection, it is supposed to use unqualified electronic signatures of users - everyone must have an appropriate digital certificate located in the zone of trust of the Bank of Russia certification center.

Also, participants in the digital ruble platform must organize control over the integrity of messages and their transmission via encrypted channels (VPN) in accordance with the requirements of the FSB. Moreover, this year it is still possible to use crypto protection that meets the requirements for the KS2 class, and from next year, 2025, the KS3 class is already needed.

For each device that interacts with the digital ruble platform, identification information is collected, formed "in the form of a derivative value from the parameter values ​ ​ of such a device, which allows identifying the device of the user of the digital ruble platform when performing operations with digital rubles (hereinafter, the digital fingerprint of the device)." At the same time, banks will have to monitor the compliance between users according to the NEP and the devices used by them according to the DCO.

There are two appendices to Regulation No. 833-P: the first is the protection requirements when processing messages by banks; the second - to protect the client. In particular, for banks there is a strict requirement to divide the information system for processing messages into two parts - the processing loop and the control loop. Each of them is isolated and checks the correctness of both the other path and the user application.

The second application requires developers to actually have a secure software development process with documentation and the ability to fix vulnerabilities. And for banks - building a system for monitoring user actions, which will check the correctness of the input data, monitor the terms of certificates, record all errors and deviations from the protocol. It is also given the rights to revoke the certificate and block the execution of user orders if signs of compromise of the application or device are found.

The regulation comes into force on January 1, 2024, and certain requirements for CIPF are postponed into force for another year - until January 1, 2025.

Russia adopted a law on the integration of the digital ruble into the tax system

On December 13, 2023, the Federation Council approved amendments to the Tax Code aimed at integrating the digital ruble into the system of tax regulation and control.

The document introduces the concept of "digital ruble account" for the Tax Code. It means an account opened by the operator of the digital ruble platform - the Central Bank of the Russian Federation - on the basis of an agreement. It will be possible to collect debts from the taxpayer at the expense of his digital rubles in the absence or insufficiency of money in other accounts. The amendments give tax officials the opportunity to suspend operations on the accounts of the digital ruble until the fact of repayment of debts to the budget is confirmed.

The operator of the digital ruble platform, as part of tax control measures, will inform the Federal Tax Service inspections about the opening or closing of the digital ruble account by citizens and entrepreneurs.

The law also allows the tax authorities to suspend operations on digital ruble accounts opened on the corresponding platform. The procedure for informing operators of the digital ruble platform about the suspension of such operations will be established by the Federal Tax Service of Russia in agreement with the Central Bank of the Russian Federation. At the same time, the duties of the operator of the digital ruble platform in connection with the implementation of tax control and his responsibility for their non-compliance are established.

At the same time, the law also assumes that the digital ruble can be used to take into account tax liabilities for special tax regimes - a single agricultural tax, a simplified taxation system, a tax on professional income and a general tax system.

The author of the initiative was Senator Nikolai Zhuravlev, the head of the State Duma Committee on the Financial Market Anatoly Aksakov and the first deputy chairman of the State Duma Committee on Budget and Taxes Olga Anufrieva. The State Duma adopted the law in the second and third readings on December 7, 2023. The law is due to come into force on January 1, 2025.^[13]

The Treasury of the Russian Federation was instructed to introduce a digital ruble in budget expenditures

Russian Finance Minister Anton Siluanov announced a project to introduce the digital ruble into budget expenditures. An agreement on this "pilot," scheduled for 2024, was reached following a meeting held by the Ministry of Finance and the Bank of Russia on November 17, 2023.

The Treasury received an appropriate order, the Central Bank is working out this task together with the Treasury, - said the head of the Ministry of Finance of the Russian Federation, answering questions from members of the Federation Council during an expanded meeting of the Committee on Budget and Financial Markets on November 20, 2023.

Siluanov stressed that the digital ruble is important not only in transfers and settlements, where its application guarantees almost zero commissions, but also for use in industries where it is necessary to ensure the targeted nature of the use of funds.

These are certain social payments for citizens, certain subsidies that are sent for the purchase or provision of certain services, - he explained (quoted by Interfax).

According to State Duma deputy Nikolai Arefiev, the use of the digital ruble in budget expenditures will help avoid spending funds for other purposes, since all transactions will be carried out under the control of the Central Bank.

The digital ruble has no special purpose, it will go on a par with paper and non-cash. But the technology of use is still slightly different than that of a regular ruble. If the usual one goes to all commercial banks, then the digital one will be issued, only the Central Bank will be taken into account. This feature opens up opportunities for control over transactions, - the deputy explained in a conversation with the publication "Лента.ру."

He added that budget funds are often spent for other purposes, but with a digital ruble it will be impossible to spend funds on third-party needs.^[14]

VTB presented cross-border B2B transfers in digital rubles

VTB on November 10, 2023 presented a prototype of the implementation of cross-border B2B transfers in digital rubles from Russia to Belarus. The transaction took place in real time in a few clicks. Read more here.

In Russia, the technology of removing digital rubles at ATMs is presented

On November 8, 2023, VTB announced the first technology for removing digital rubles through ATMs to Russia. Its capabilities will be available to users of the VTB Online Internet banking system. It is assumed that it will be possible to receive real money converted from digital rubles in any of the 14 thousand ATMs of the bank throughout the Russian Federation. Read more here.

Digital ruble will be used for state payments

In mid-October 2023, the Bank of Russia announced the development of the possibility of using the digital ruble for state payments, including for paying taxes.

This question also periodically arises, what will happen to government payments, whether it will be possible to pay taxes. We are now, together with the Ministry of Finance, with the Federal Treasury, looking at where the digital ruble can be most effectively used in order to add value. Therefore, it is also planned at the next stages, - said Alla Bakina, director of the department of the national payment system of the Central Bank.

According to her, in addition to simple functions by type of opening and replenishing digital accounts by individuals and legal entities, by mid-October 2023, the functions of auto payments and payment using a QR code are being tested. In addition, the possibility of conducting operations where there is unstable communication or no Internet in the so-called offline mode is being developed. But this option is assigned to later stages.

By mid-October 2023, testing of the operation with the digital ruble continues. Among them are the opening of wallets in digital rubles to banks, customers (individuals and legal entities), transfers in digital rubles between customers and payment in trade and service enterprises. Pilot tests of the technology involve about 600 individuals and 30 legal entities in 11 cities of Russia.

As Alla Bakina noted on October 18, 2023, the Bank of Russia does not expect a refusal of non-cash payments due to the introduction of digital rubles. She noted that there is also a category of people who are used to using cash, and situations where only this form of payment can be used.

I believe that we should have all the possibilities, a variety of tools: these are cash, and cards, and just bank accounts, and digital accounts, and mobile applications, and pay services, because then competition is created between them, - added the director of the department of the national payment system of the Central Bank.[15]

The Central Bank of the Russian Federation decided to open foreign banks access to the digital ruble to bypass the SWIFT system

In October 2023, it became known about the decision of the Central Bank of the Russian Federation to open foreign banks access to the digital ruble to bypass the SWIFT system. The document comes into force on January 1, 2023.

The regulator has published a draft directive that makes changes to bank accounting charts and creates a special account that will take into account the digital rubles of foreign credit institutions. The instruction creates a "digital ruble account of a foreign bank." Transactions on such accounts will be carried out in accordance with the provision "On the platform of the digital ruble." However, in accordance with the current version of the regulation, foreign banks cannot be participants in the platform and open accounts in digital rubles, and in accordance with the law on digital ruble, they can.\

RBC notes that, according to the version of this provision in force by October 10, 2023, foreign banks cannot have accounts in digital rubles. At the same time, they can do so under the digital ruble law. The Central Bank said that the digital ruble platform involves cross-border interaction. In this regard, this possibility should be spelled out in by-laws. The work will be carried out "as needed," specified there.

According to Ekaterina Semerikova, head of research at the blockchain and fintech laboratory of the Skolkovo School of Management, the key goal of attracting foreign banks to work with the digital ruble is to do business with Russian companies.

An account in digital rubles may allow for settlements that are now difficult due to sanctions regimes. Moreover, this may be relevant for those who want to serve Russian customers, since now there is a limited range of solutions for those who want to maintain international partnerships, the expert said in October 2023.

According to Abbasova, foreign banks can also use digital rubles to invest in Russian projects and assets and in the future carry out cross-payments between digital rubles and digital currencies of central banks of other states by analogy with correspondent accounts.^[16]

The introduction of the digital ruble costs banks hundreds of millions

Rosbank will spend more than 150 million rubles on the introduction of the digital ruble within two years. Such data at the end of September 2023 was disclosed by Olga Makhova, director of changes, innovations and data management at Rosbank.

According to the Vedomosti newspaper, referring to Makhovoy's statements, the largest costs when introducing the digital ruble are associated with information security and the need to create a special infrastructure for settlements. Operations are carried out on the platform of the Central Bank: other banks are connected to it, after which they act as an intermediary between the regulator and customers. At the same time, the bank does not need deployed blockchain technologies, but there are many nuances related to complex cryptography. In fact, each transaction is signed by an electronic digital signature, and this process requires the formation of a fundamentally different information security infrastructure.

This is a very difficult story from the point of view of the organization, which requires a serious restructuring both inside the bank's systems and inside the bank's mobile application, says Makhova.

In addition, significant funds are spent on paying for the work of highly specialized specialists. The introduction of the digital ruble takes place in a difficult geopolitical situation associated with sanctions restrictions. Because of this, the problem of import substitution and technological migration arose.

For banks that were engaged in the introduction of the digital ruble, the issue of infrastructure development has become very urgent. This is primarily IT improvements, the installation of new equipment, the processing of client data, the mechanism for integrating transactions with a digital ruble into a mobile application, - said independent financial market expert Andrei Barkhota, quoted by the Kommersant newspaper. [17]

The first medical policy using the digital ruble has been issued in VSK

The first medical policy paid by digital rubles has been issued in the Insurance House of VSK. The company announced this on September 20, 2023. Read more here.

In Russia, began to sell insurance for digital rubles

At the end of August 2023, Ingosstrakh announced the start of testing operations with a digital ruble. Travel insurance policies and accident insurance for the digital ruble have already begun to be sold in Moscow, Kazan and Nizhny Novgorod. Read more here.

Banks began operations with a digital ruble

On August 15, 2023, 13 Russian banks began pilot tests of the digital ruble. As part of the experiment, it is planned to test a number of basic operations, including the opening and replenishment of electronic wallets.

The launch of piloting operations with real digital rubles is the most important stage of the project. This will allow us to check the operation of the digital ruble platform already in the industrial environment, work out all the necessary procedures with the involvement of customers, adjust the processes, if necessary, and make sure that the client path is convenient and understandable for users, - said the first deputy chairman of the Central Bank of Russia Skorobogatova.

According to Promsvyazbank, the participants of the focus group will test the replenishment of digital wallets, transfers of digital rubles, payment for goods and services using a QR code, return of goods with the reverse crediting of digital rubles to the client's electronic account. In addition, it will be possible to set up simple auto transfers of digital rubles in a mobile bank, the credit institution noted.

According to the participants in the experiment, by August 2023 there is a need to form a new trust space for calculations, where translation, transaction programming and information management are connected in one piece and reliably protected. The digital ruble platform will provide new opportunities for creating self-executing transactions. A secure environment for programming smart contracts will appear.

It is assumed that the use of smart contracts on the digital ruble platform will ensure transparency of settlements, as well as the ability to flexibly manage balances on their digital wallets. At this stage, individuals will be able to use auto payments in digital rubles, setting in advance the date, amount and recipient of the transfer. As it develops, other opportunities for self-executing transactions with a digital ruble will become available.^[18]

Central Bank called the consequences of the launch of the digital ruble

The introduction of the digital ruble will not lead to an outflow of funds from urgent bank deposits. In addition, this will be an additional incentive for banks to offer customers more favorable terms of service. This was announced by the Bank of Russia in the draft "Main Directions of the Unified State Monetary Policy for 2024 and the period 2025 and 2026," which was published on the regulator's website in August 2023.

According to the Central Bank, the introduction of a digital ruble will provide a number of advantages, namely:

• increasing the availability of financial services, including in remote and inaccessible areas;
• the ability to access a digital wallet through any financial institution, as well as with limited Internet access;
• development of a new payment infrastructure.
• Optimization of settlement costs This will reduce transaction costs and support the competitiveness of the Russian economy.

The Central Bank is confident that the introduction of the digital ruble will not affect the fundamental principles of the functioning of the banking system and the principles of the implementation of monetary policy. The emergence of another "cheap and convenient payment tool" will be an additional incentive for banks to increase the attractiveness of current accounts, as well as "offer customers more favorable terms of service." Also, the spread of a new form of money "will create conditions for increased competition in the banking sector." And it will make it possible to more effectively redistribute both financial resources in the economy and the profits of banks in favor of those who offer more favorable conditions for their products.

In addition, the Bank of Russia noted that the emergence of a new form of money will not be accompanied by an increase in demand for money from the economy, in fact, "citizens and organizations will replace cash and funds in bank accounts with digital rubles."^[19]

Named 13 banks that will be the first to launch operations with real digital rubles

On August 9, 2023, the Central Bank of the Russian Federation named 13 banks that will be the first to test real operations with a digital ruble. The list is as follows:

• Alfa-Bank;
• "Дом.РФ";
• Ingosstrakh Bank;
• VTB;
• Gazprombank;
• Kiwi Bank;
• AK Bars Bank;
• Promsvyazbank;
• MTS Bank
• Sovcombank;
• Sinara Bank;
• Rosbank;
• Transcapitalbank.

At the first stage of piloting, basic operations will be worked out: opening and replenishing accounts of the digital ruble (digital wallets), transfers of digital rubles between citizens, simple auto payments, as well as payment for purchases and services using a QR code. Participants of the pilot will be able to pay with digital rubles at 30 retail outlets located in 11 cities of Russia. The pilot starts on August 15, 2023.

According to the Central Bank, by the end of 2023, the list of pilot participants will be expanded by attracting both citizens and companies. And in 2024, the list of operations will be replenished with a payment scenario using a dynamic QR code, transfers between legal entities. In addition, the templates of simple auto payments will be expanded, the press service of the regulator noted.

The launch of piloting operations with real digital rubles is the most important stage of the project. This will allow us to check the operation of the digital ruble platform already in the industrial environment, work out all the necessary procedures with the involvement of customers, adjust the processes, if necessary, and make sure that the client path is convenient and understandable for users. We plan to introduce a digital ruble into mass circulation based on the results of phased testing and subject to the successful completion of piloting all scenarios of operations with a digital ruble. We expect that starting from 2025, citizens and businesses will be able to actively use the national digital currency, naturally, at will, "said Olga Skorobogatova, First Deputy Chairman of the Board.[20]

Banks asked the Central Bank to clarify what a digital ruble is

On August 7, 2023, it became known that the Association of Banks of Russia (ADB) sent a letter to the Central Bank of the Russian Federation with a request to clarify certain provisions on the digital ruble. We are talking, in particular, about clarifying the status of the new form of the Russian national currency.

The letter notes that "there is an extremely wary attitude in society towards the introduction of the digital ruble by citizens/consumers of financial services." The Central Bank declares that the digital ruble will make familiar transactions more profitable for individuals. In turn, the business will be able to reduce costs: it is planned to establish a tariff for accepting payments in digital rubles at a low level - 0.3% of the amount.

However, according to the Kommersant newspaper, bankers turned to the Central Bank with a request to clarify that, in fact, such a digital ruble is the third form of money or a non-cash currency. The fact is that earlier the digital ruble was classified as non-cash funds, but as of the beginning of August 2023, the Central Bank calls it the third form of the ruble. The procedure for applying a large number of regulations related to non-cash funds depends on the solution of issues related to the digital ruble.

Bankers propose to introduce a direct ban on forcing citizens to open a digital account, limit the increase in tariffs for the services of a digital ruble operator for individuals and record the inadmissibility of the operator of the digital ruble platform to unilaterally amend the agreement.

It is not clear from the existing documents whether banks will be obliged to become participants in the digital ruble platform and if so, what they must finalize in their infrastructure for this. In their opinion, from the adopted documents "it is not possible to establish the procedure for concluding a digital ruble account agreement by users" and the legal nature of the digital ruble account agreement. There were questions about the procedure for debiting digital rubles from an account.^[21]

Central Bank approved tariffs for operations with a digital ruble for individuals and legal entities

The Bank of Russia has approved tariffs for operations with a digital ruble, for individuals they will be free. The regulator announced this on August 3, 2023.

According to the Central Bank, the tariff for business for accepting payment for goods and services in digital rubles will be 0.3% of the payment amount (but not more than 1.5 thousand rubles). At the same time, the tariff for companies providing housing and communal services will be 0.2%, but not more than 10 rubles. The commission for transfers between legal entities is set at 15 rubles per operation.

These tariffs will take effect from January 1, 2025. Until that moment, a grace period has been established when all transactions with digital rubles on the Bank of Russia platform will be carried out free of charge.

Each person or company will be able to open one digital ruble (digital wallet) account on the Bank of Russia platform. This can be done for free. In the same way, you will not need to pay any commissions for replenishing such wallets from your bank accounts or for operations to transfer digital rubles from wallets to bank accounts, the Central Bank said in a statement.

The Bank of Russia also introduced the digital ruble logo. It will be integrated into mobile applications of banks through which users can open digital wallets and conduct operations with digital rubles.

The Central Bank of the Russian Federation plans to start a pilot with real digital rubles in August 2023 with the participation of a limited number of clients of 13 banks. It will be held in several stages in 2023 and 2024. The introduction of the digital ruble into wide circulation is supposed to begin gradually from 2025.

In early August 2023, the first deputy chairman of the Bank of Russia Olga Skorobogatova spoke about the pros, cons and prospects of a new form of Russian currency. According to her, it will be possible to steal digital rubles only using social engineering, and the payment technology from an offline wallet using a smartphone from an application without communication with the Central Bank servers still needs to be developed.

The Central Bank of the Russian Federation explained that the system for protecting the Russian digital currency provides for a set of measures to ensure the safety of information at each stage of operations with the digital ruble. However, it will not be possible to protect the new currency from scammers resorting to social engineering, regardless of the level of security.^[22]

Central Bank has developed requirements for cyber protection of the digital ruble

At the end of July 2023, the Central Bank of the Russian Federation presented requirements for cyber protection of the digital ruble. Their execution, according to the regulator, will preserve the integrity and confidentiality of information during the use of citizens and companies of the third form of Russian currency.

As Vedomosti writes with reference to the draft regulation for banks developed by the Central Bank, on which they will have to rely when providing information protection for operations with a digital ruble, the requirements apply to automated systems, software, computer equipment, telecommunications equipment that are used by platform participants (banks) when working with protected information. In particular, information about funds on digital wallets, transactions with rubles, access to the platform and closing an account, as well as information necessary for authorization and identification of users will be protected. The document also instructs banks to use an electronic signature, confirming documents for which were issued by the Central Bank certification center.

Information security experts interviewed by Kommersant believe that in general the Central Bank project looks "quite systemic." According to RTM Group manager Yevgeny Tsarev, banks will not have to rebuild the infrastructure significantly, but they will need to allocate another segment of information systems, equipment and resources.

Introducing new elements of the infrastructure, including servers, security tools, as well as attracting new specialists, will take money and time, he emphasizes.

According to Tsarev, for medium-sized banks without branches, expenses can reach 100 million rubles, and for large ones (with branches, a distributed structure, etc.) - they will exceed this bar. "A regular mandatory audit of information security, which must be carried out every two years, will be added to the costs, the average cost of it today is a million rubles," the expert said.^[23]

Putin signed a law on digital ruble

Russia Vladimir Putin The president signed the digital ruble bill. The corresponding document was published on the official Internet portal of legal information on July 24, 2023.

According to the law, which amends the Civil Code, it will be possible to make settlements with a digital ruble in accordance with the legislation on the national payment system. Digital rubles will relate to non-cash funds. Also, such funds can be bequeathed, and to the heirs - to receive them urgently to carry out the costs of a worthy funeral of the testator.

As the head of the Central Bank Elvira Nabiullina said on July 21, 2023, the use of the new currency will be absolutely voluntary. She noted that the digital ruble will be an additional opportunity for people.

They want - use, want - do not use. No one is going to force anyone into a digital ruble, "Nabiullina said.

At the same time, the regulator expects that the use of the digital ruble will be more convenient and cheaper for both citizens and business, and people will begin to use this new opportunity.

The head of the State Duma Committee on Small and Medium Entrepreneurship, Alexander Demin, believes that the introduction of the digital ruble may complicate business in some remote regions, where the quality of the necessary infrastructure is not yet enough.

If in the central regions there is definitely a prospect for development, then, for example, in remote regions where there are problems with communication, where it is not always possible to use the same terminal, there are more questions. On the one hand, the digital ruble will remove transaction costs when paying, and on the other hand, it will lead to the fact that they [entrepreneurs] will be obliged to revise the structure of their business and completely digitize it. In my opinion, this is a promising situation, it will largely remove questions from the point of view of the commission, acquiring, but on the other hand, of course, it will complicate business for remote regions, where everything is not always good with infrastructure, the deputy said.

Federal Law on Amendments to Articles 128 and 140 of Part One, Part Two and Article 1128 and 1174 of Part Three of the Civil Code of the Russian Federation

The Federation Council approved the basic law for the introduction of the digital ruble

Senators approved two federal laws aimed at introducing the digital ruble, according to a statement published on the website of the Federation Council of the Federal Assembly of the Russian Federation on July 19, 2023.

Thus, the federal law "On Amendments to Certain Legislative Acts of the Russian Federation" is aimed at developing the payment infrastructure, increasing the availability and efficiency of payment services by establishing the foundations for legal regulation of the transfer of digital rubles.

The document amends federal laws "On banks and banking activities," "On the Central Bank of the Russian Federation (Bank of Russia)," "On the national payment system" and other federal laws in connection with the creation of a digital ruble platform and the establishment of a procedure for the transfer of digital rubles.

According to the Federal Law, the operator of the digital ruble platform is the Bank of Russia, which organizes and ensures the uninterrupted functioning of it.

The document gives definitions of such concepts as the digital ruble platform, the rules of the digital ruble platform, the user of the digital ruble platform, and the participant of the digital ruble platform. The specifics of transactions are determined.

The second of these federal laws is "On Amendments to Articles 128 and 140 of Part One, Part Two and Article 1128 and 1174 of Part Three of the Civil Code of the Russian Federation."

The document makes changes to the Civil Code of the Russian Federation aimed at establishing the legal basis for non-cash payments by participants in civil circulation within the framework of civil law relations. The list of property and property rights that are objects of civil rights includes digital rubles.

At the same time, it is envisaged that payments on the territory of the Russian Federation can be made, including through settlements in digital rubles. Such settlements will be made through the transfer of digital rubles by the Bank of Russia in the forms and within the framework of the digital ruble platform in accordance with the legislation of the Russian Federation on the national payment system.

By federal law, the provisions of the Civil Code of the Russian Federation on probate orders of rights to funds are supplemented by a provision establishing that the procedure for making probate orders in digital rubles is determined by the Government of the Russian Federation in agreement with the Bank of Russia^[24].

The digital ruble is created, first of all, as another means for payments and transfers, so it will not be possible to open a deposit in them and get a loan, and interest on balances in digital wallets will not accrue.

Operations will be carried out according to the rules approved by the Board of Directors of the Bank of Russia. He will also determine the tariffs and terms of operations. The Central Bank will be responsible to users for opening digital wallets and performing some other functions.

It is planned that transfers and payments will be free for citizens, and tariffs for businesses for accepting payment in digital rubles will amount to 0.3% of the amount^[25].

It is assumed that each client will have only one wallet in digital rubles, but these funds will be available through any bank. In addition, customers will be able to use a wallet with digital rubles without access to the Internet. It will be possible to digitize up to 300 thousand rubles a month, but there will be no^[26] within the digital ruble platform itself].

The main provisions of the law may enter into force on August 1, 2023.

Central Bank approved the rules of the digital ruble platform

The Bank of Russia approved the rules of the digital ruble platform. The regulator published the corresponding document in July 2023.

It contains the basic rules according to which the Bank of Russia, as a platform operator, will interact with its participants and users, as well as the requirements for them, the Central Bank explained, calling the document "a key regulatory act" to launch the digital ruble.

The position of the Central Bank lists the types of digital wallets (digital ruble accounts), the procedure for opening and closing them, a list of transactions with digital rubles are given. In addition, the document describes the mechanism for resolving disputes, considering user requests and claims, as well as the procedure for monitoring participants' compliance with platform rules. If a problem arises, the platform participants will be able to send a claim to the Central Bank through their personal account or in paper form. Within ten working days, the regulator must consider the appeal and give an answer to it: about satisfying the requirements, refusing to recognize the claim, or about creating a conciliation commission.

In accordance with the rules, users of the digital ruble to open an account and conduct transactions with this form of money must be registered with Public services and have a simple electronic signature. This will also need to be done if a person wants to access an already opened wallet through another bank's application, which he did not use to open a digital account.

For transactions, three types of accounts are assumed: one for individuals, the other for legal entities, the third for banks as system operators. The rule is "one client - one account." But Russians will be able to access a digital wallet from applications from different banks.

Each individual, company or individual entrepreneur can open only one digital ruble account on the platform. It will be possible to close such an account by contacting the Central Bank. For some reasons, the regulator will be able to independently close wallets. If the owner of the account is in bankruptcy, then the application of the arbitration manager will also be required to close the account.

The regulator will be able to suspend access to the platform if, for example, fraudsters begin to write off money from the account or the certificate of the user's electronic signature verification key is canceled.

Regulation on the digital ruble platform

The State Duma adopted a law on digital ruble

On July 11, 2023, the State Duma of the Russian Federation adopted a basic law enshrining the legal norms for the introduction of a digital ruble in Russia - the third form of the national currency. The Bank of Russia plans to issue a digital ruble in addition to existing cash and non-cash funds.

VTB presented options for using smart contracts with a digital ruble

On July 7, 2023, VTB submitted its proposals for basic scenarios for the use of smart contracts with a digital ruble for individuals and legal entities.

It is no longer enough for modern society to simply make a transfer from account to account. There is a need to form a new settlement confidence space where translation, deal programming and information management are linked together and securely protected. The digital ruble platform will give new opportunities for creating self-executing transactions, a safe environment for programming smart contracts will appear, "said Vadim Kulik, Deputy President and Chairman of the VTB Board.

The use of smart contracts with a digital ruble will ensure transparency of settlements for individuals, as well as the ability to flexibly manage balances on their digital wallets. This can be convenient when using "children's" wallets, when it is necessary to spend only on a given list or establish a ban on the purchase of certain categories of goods. And also for transfers of individuals to various purposes, for example, to charity, when transparency of calculations is important.

This may be applicable for self-executing transactions. For example, to collect money with automatic transfer to the recipient when the desired amount is reached, automatic congratulations on the list of contacts, followed by the transfer of a certain amount on a given date, or automatic replenishment of the digital wallet when the established minimum balance is reached or upon receipt. salaries It is possible to transfer digital rubles to the bank's wallet to guarantee their further transfer with confirmation through an bank application analogy with a letter of credit.

The use of smart contracts with a digital ruble will allow legal entities to automate settlements under contracts, as well as monitor their targeted use, including in public procurement and government contracts. This functionality will be useful for both financial market participants and business.

The functionality of smart contracts will allow legal entities to automatically transfer digital rubles from the wallet of the parent organization to the wallets of subsidiaries or affiliates to make their payments in case of insufficient own funds. Smart contracts also allow you to automatically form payment documents and transfer digital rubles according to predetermined conditions - payment of wages, tax payments, repayment by loan term, settlements with suppliers, etc. It also reduces the labor required to make payments to the customer.

VTB has been actively working on the digital ruble since the launch of the project by the Bank of Russia in 2020. In 2022, the bank tested the prototype platform of the digital ruble of the Bank [of Russia]. During this work, various operations with digital rubles were tested - opening and closing wallets, transfers between individuals, as well as payment in favor of legal entities. VTB systems with the Bank of Russia digital ruble platform have been successfully tested.

The next stage is piloting operations in digital rubles on real money. As stated, this will happen after the adoption of bills on the digital ruble. Piloting will take place at a limited range of trade and service enterprises and individuals from among VTB employees, as well as other banks of pilot participants. On the part of VTB, such a focus group has already been formed. Based on the results of work on the focus group, it will be possible to assess the readiness to launch payments with a digital ruble as a whole.

The Central Bank of the Russian Federation recognized legal problems around the digital ruble

In mid-May 2023, it became known that experts from the Central Bank of the Russian Federation (CBR) recognized the existence of legal risks associated with the introduction and use of the digital ruble.

As stated on the Central Bank website, the emergence of a national digital currency will make payments faster, easier and safer. At the same time, reducing users' dependence on individual providers "will increase the stability of the country's financial system." For citizens, transactions with a digital ruble can be similar to the use of electronic wallets, payment or mobile applications. But there are also a number of difficulties.

The Vedomosti newspaper reports that within the framework of the concept of the new national currency, not only nuances have been determined, but also the rules for resolving disputes. In particular, if citizens have claims or disagreements when using the digital ruble, it is not clear how they will be able to interact with the platform operator - the Bank of Russia. The fact is that the by-laws governing this process have not been worked out. Moreover, the rules for the functioning of the site itself have not been determined. There is a possibility that the regulator will have to share responsibility for controversial issues with banks.

Due to the unavailability of the legislative framework, the start of the pilot project for the introduction of the digital ruble, previously scheduled for April 1, 2023, had to be postponed. Professor of the Department of Financial Law of the Moscow State Law University Tatyana Rozhdestvenskaya, according to Vedomosti, identifies three groups of relations when using the new national currency: between the Central Bank and banks, between banks and users, as well as between the Central Bank and users. In the third version, the principle of interaction is not fully clear. In any case, the circulation of the digital ruble should begin before the end of 2023.^[27]

In the first reading, a package of bills on the integration and legalization of the digital ruble was approved

In the first reading, two bills were approved No. 270838-8 "On Amendments to Certain Legislative Acts of the Russian Federation in Connection with the Introduction of the Digital Ruble" and No. 270852-8 "On Amendments to Parts One, Two and Three of the Civil Code of the Russian Federation," the press service of the State Duma deputy RFAnton Nemkin said on March 28, 2023. Documents submitted by a group of deputies and senators were developed as part of the implementation of the strategy for the development of the national payment system for 2021-2023, approved by the Bank of Russia.

According to IT experts, the regulation of the digital currency market will lay the foundation for the restoration of international payment transactions, and the technology of a distributed register and the assignment of a unique code to each digital ruble will help return money written off from citizens under pressure from fraudsters.

One of the authors of legislative initiatives, the head of the State Duma Committee on the Financial Market Anatoly Aksakov noted that the expansion of the use of digital technologies by introducing a digital ruble should contribute to increasing the availability, speed, convenience and security of settlements while reducing costs.

When banks countries developing the first bill, lawmakers analyzed the experience of central others in creating and regulating digital currencies. In particular, approaches to the introduction of digital currencies in countries and, European Union EEU as well as in,, and were studied. PEOPLE'S REPUBLIC OF CHINA Turkey Great Britain The general USA conceptual approaches in this area are the same for the introduction of any digital currency and were the basis for the concept of creating a digital ruble and new bills. It is expected that amendments to the Civil Code of the Russian Federation will solve a wider range of problems. The correction of the code is aimed at developing the payment infrastructure by expanding the use of digital technologies by businesses and creating state conditions for non-cash payments with digital rubles within the framework of civil law relations.

IT experts are also convinced that the introduction of the digital ruble into circulation will increase competition in the financial market and create innovative products and services for both citizens and businesses. The development of this payment infrastructure will largely reduce the costs of operations, since tariffs will be set according to the same rules.

The launch was postponed to a later date due to the unavailability of the legislation

The introduction of the digital ruble into official circulation is postponed to a later date, said Anatoly Aksakov, head of the State Duma Committee on the Financial Market, on March 22, 2023. The reason is the unavailability of the legislative framework. The launch of the digital ruble in pilot mode was planned from April.

Russian banks completed the first stage of testing the digital ruble

On March 3, 2023, information appeared that Russian banks from the pilot group completed the first stage of testing the digital ruble. The tests were held in February 2023. The pilot of the Central Bank with real digital rubles should begin in April 2023.

As noted by the Managing Director for Digitalization and, IT Дом.РФ Nikolay Kozak CENTRAL BANK OF THE RUSSIAN FEDERATION confirmed the successful passage of bank test tests of interaction with the digital ruble platform.

According to him, a total of about 40 different cases were implemented, including opening, closing, blocking and unlocking a digital wallet, transferring funds by phone number, requesting a balance and transaction history, connecting a new device to access the wallet, paying by QR code, etc.^[28]

Rosbank demonstrated the first deal with digital gold for digital rubles in Russia

In February 2023, Rosbank announced the demonstration of the first deal in Russia to exchange digital gold using digital rubles. It involved the exchange of tokenized gold between the two parties using innovative distributed register (blockchain) technology to ensure the security and continuity of the process. The project was implemented jointly with the Atomais platform. Read more here.

2022

10 banks have already developed mobile applications for settlements in digital rubles

15 banks are participating in the pilot project to launch settlements in digital rubles, 10 of them have developed their mobile applications as of November 2022, First Deputy Governor of the Bank of Russia Olga Skorobogatova said on November 11, 2022.

As stated, from April 2023 we will launch pilot real operations with some clients on the digital ruble platform, - said Olga Skorobogatova, according to the Central Bank website. - We have 15 banks in the pilot project, 10 of them have already developed their mobile applications and are testing the client path with us.

We believe that this is a very good tool for financial market participants, "added Olga Skorobogatova.

The Ministry of Digital Development also reported that according to participating in the pilot of the Central Bank for a digital ruble^[29] the^[30].

Central Bank will test the digital ruble on state payments

On October 13, 2022, the Central Bank of Russia announced plans to test the digital ruble on government payments. But to implement such a project, as the regulator indicated, it will need to be worked out with the Ministry of Finance of the Russian Federation and the Treasury and, possibly, the expansion of the legislative framework.

{{quote 'In this [2022] year, we, together with banks from the pilot group, are testing a number of transactions with digital rubles. Among them are the opening of digital wallets on the digital ruble platform, their replenishment, transfers between citizens, payment for goods and services. The work is carried out to debug systems and prepare to go into "piloting" on real clients with real digital rubles in April 2023, the Central Bank noted. }}

After that, it is planned to gradually develop the digital ruble platform, for which various types of state payments and transactions will be tested, the Bank of Russia added. At the same time, the Central Bank stressed that it will be necessary to finalize information systems, mutual integration of systems and processes, and expand the regulatory framework. According to the regulator, by October 13, 2022, the stages of the project are being discussed, and it is too early to name specific deadlines.

{{quote 'The digital ruble is definitely planned to be used in the budget process, it will be a unique tool to control the spending of public funds, but first it must be regulated, "they write" "News with reference to Deputy Finance Minister Alexei Moiseev. }} The Central Bank expects that the digital ruble will allow the state to increase the level of control over the targeted spending of budget funds, make targeted payments and optimize the process of returning unspent funds.^[31]

Digital ruble will appear in the reporting of Russian banks

At the end of September 2022, it became known about the introduction CENTRAL BANK OF THE RUSSIAN FEDERATION of the concept of digital into the chart of accounts of credit institutions. ruble According to the regulator's requirement, from 2023 banks they will begin to reflect a number of new positions, in particular, accounts for accounting and movement of the digital ruble on the digital wallet of a credit institution.

According to Kommersant, the Central Bank of Russia introduces a separate account for accounting for digital financial assets (CFA) and accounts that take into account funds held in special accounts (types "C," "K," "I," "O," "D"). It is also assumed that at the first stage, banks will reflect the digital ruble only as assets. Digital financial assets (DFAs) will be used in both the active and passive parts of the balance sheet.

According to a newspaper source in the banking market, by the end of September 2022, a scenario is being considered when a client converts his cash or non-cash funds into digital rubles on a digital wallet. Then he can transfer these funds to the wallet of another individual, pay them or convert them back. In this design, a passive account in digital rubles is not needed. Earlier, the Central Bank of the Russian Federation indicated that credit organizations will only be operators for the transfer of funds in digital form of the national currency, that is, they will not be able to form liabilities based on them.

As the agency reported on September 26, 2022 Reuters , citing the head of the State Dumas financial market committee, Anatolia Aksakov Russia is going to use the digital ruble in mutual settlements with. China

{{quote 'The topic of digital financial assets, the digital ruble and cryptocurrencies - it has now intensified in society, as Western countries impose sanctions and create problems for bank transfers, including in international settlements, the question arises of an alternative,^[32] }}

The Central Bank announced the start date for testing the digital ruble

The Bank of Russia plans to begin testing the digital ruble with real customers from April 2023. This was announced by the chairman of the Central Bank Elvira Nabiullina, whose words were quoted by Interfax on September 16, 2022.

As she clarified, testing will start "somewhere from April 1, 2023" and will be carried out with real customers, but in limited volumes and gradually.

As of September 16, 2022, the Central Bank is testing the digital ruble together with fifteen banks.^[33]

The Central Bank called the stages of the introduction of the digital ruble

In August 2022, the Central Bank of Russia spoke about the stages of the introduction of the digital ruble. The relevant information is contained in the draft main directions of the unified state monetary policy for 2023-2025 published by the regulator.

According to the document, the Bank of Russia will introduce a digital ruble gradually. In 2022, the digital ruble platform will be tested, and in 2023 the Central Bank is going to start piloting settlements "on real money" between individuals (C2C), as well as individuals and enterprises (S2V, B2C).

In 2023, a limited circle of participants will be given the opportunity to conclude and execute smart contracts on the digital ruble platform, that is, transactions automatically executed upon the occurrence of conditions predetermined by the parties. This functionality of the digital ruble platform will optimize business processes related to interaction between counterparties, as well as minimize time and costs during the transaction.

In 2024, the Bank of Russia will begin to gradually connect all credit institutions to the digital ruble platform, and will increase the number of available options for payments and transactions using smart contracts. As the Federal Treasury is ready, payments using digital rubles will become available both in favor of the state and from the state in favor of individuals and enterprises (C2G, B2G, G2C, G2B). The Central Bank will cooperate with other central banks developing their own digital currencies to carry out cross-border and foreign exchange transactions with digital currencies.

In 2025, the Bank of Russia plans to implement an offline mode of the digital ruble, to connect non-bank financial intermediaries, financial platforms, and exchange infrastructure. The phased process of introducing the digital ruble will give market participants the opportunity to adapt to new conditions.^[34]

Diasoft has developed a solution to automate work with the Bank of Russia digital ruble

On July 12, 2022, Diasoft announced the development of a solution for automating work with the Bank of Russia digital ruble. Read more here.

The Central Bank of the Russian Federation told how the digital ruble will help business

At the end of May 2022, the Central Bank of the Russian Federation told how the digital ruble will help business. It is expected to make calculations cheaper and easier, but technologically advanced companies will benefit the most

The digital ruble, in addition to many advantages of tokenization, can still solve the issue of automation of all payments, that is, the implementation of smart contracts, "Olga Skorobogatova, First Deputy Chairman of the Central Bank, said on May 25, 2022.

The regulator believes that the digital ruble will make it possible for businesses to use smart contracts to conclude transactions with counterparties and ensure the automatic execution of payments upon reaching predetermined conditions, the materials say. When using digital rubles, the state will have the opportunity to control the targeted spending of budget funds allocated for state programs, projects and subsidies.

As a representative of the Central Bank told Vedomosti, commissions for business will definitely not be higher than the level of tariffs in the Fast Payment System (FPS). VTB noted to the publication that the use of the digital ruble will reduce the costs of acquiring commissions, as well as speed up the execution of transactions.

The digital ruble is a replacement for the good old checkbook, which never took root in Russia due to distrust of the method of confirming the counterparty's solvency, said Alexey Skorodumov, chairman of the board of Derzhava Bank. But the very need for offline purchases is and should be tried to revive such calculations on a perfect different technology, the banker believes.

Olga Makhova, Director for Innovation and Data Management of Rosbank, attributed programmability, transparency of origin and history of operations to the advantage of payment with digital rubles in comparison with other payment means.

Digital rubles will reduce administrative costs associated with the implementation of the necessary formal procedures, and will provide all participants with transparency and confidence in the process regulated by the contract, add to VTB.^[35]

2021

The Central Bank of the Russian Federation has developed a prototype of the digital ruble

On December 20, 2021, the Central Bank of Russia announced the completion of the development of a prototype of the digital ruble platform. The regulator is preparing to test the technology - it starts in early January 2022.

The prototype of the digital ruble platform is ready. And immediately after the January holidays, in January, we begin piloting the operations of the first stage with 12 banks, "Olga Skorobogatova, First Deputy Governor of the Bank of Russia, told reporters (quoted by TASS).

In early December 2021, the Central Bank of the Russian Federation reported that at the first stage of testing the digital ruble, credit organizations and C2C operations (Consumer to Consumer, consumer-consumer interaction) will be connected.

As part of the second stage of testing, the Federal Treasury will be connected to the digital ruble platform, support for smart contracts will be implemented, integration of financial intermediaries and infrastructure - exchanges, brokers, marketplaces, insurance companies - offline mode has been introduced, and the ability to convert the digital ruble into foreign currencies and open wallets to non-resident customers has been added.

Simultaneously with the introduction of the digital ruble, an infrastructure will be created for payments, money transfers and other transactions with a new type of currency.

Dmitry Tarasov, head of the Center for Macroeconomic and Regional Analysis and Forecasting of Rosselkhozbank, says that calculations in a digital ruble can be made strictly targeted, be it social payments, road repair costs or spending "pocket" money issued by parents in digital form. " That is, the technology of the digital ruble will allow each ruble to be programmed so that it can only be spent on certain goods and services. Non-cash funds do not have such a function, he noted^[36]

The head of the Central Bank is about a digital ruble: "It should be a real full-fledged ruble, no discount there"

Chairman of the Central Bank of the Russian Federation Nabiullina in mid-November 2021 named the conditions for the introduction of the digital ruble into the Russian economy.

This is the third form of money, and we will launch it on a large scale only when we make sure that all the conditions are met, which you are talking about, are easily transferred from cash to digital, to cashless, only one to one, and only under these conditions. It should be a real full-fledged ruble, no discount or something else, - said the head of the Central Bank (quoted by RBC).

She stressed that this issue belongs to the field of money circulation and here you need to be very careful. According to Nabiullina, the digital ruble should not affect inflation in Russia.

The regulator would also like Russians to choose the digital ruble on their own. The head of the Central Bank said the Bank of Russia to test the prototype of the digital currency for at least a year before its launch. Testing of the project will begin in 2022, and the creation of the prototype should be completed by the end of 2021.

In January 2022, the State Duma plans to begin developing amendments to the legislation necessary to introduce the digital ruble into the country's economy.

We do not have a task so that there is a lot of digital ruble. Not this task, but the task is for the digital ruble to help make transactions cheaper. Technology now allows you to do. And for us this will be a criterion for success, and not the volume of digital rubles, - said Elvira Nabiullina.

It is assumed that the digital ruble will be issued in the form of a code and stored in the Central Bank on electronic wallets, with its help it will be possible to pay for purchases and transfer money online. Digital rubles can also be used offline, in the absence of access to the Internet. Transfers in digital currency between individuals will be free, but a commission may be charged for payment of goods, which should not exceed 0.4-0.7% of the transfer amount, as in the Fast Payment System.^[37]

Russian banks may lose 9 trillion rubles after the introduction of the digital ruble

On November 2, 2021, it became known that Russian banks may face an outflow of liquidity due to the introduction of the digital ruble by the end of 2024. 9 trillion rubles can flow into this form of money, where 5 trillion rubles can leak from the accounts of citizens, another 4 trillion rubles - companies. This forecast is given by experts from the Center for Macroeconomic Analysis and Short-Term Forecasting, Vedomosti reports.

To compensate for the outflow CENTRAL BANK , it to banks will have to provide liquidity by 8-8.5 trillion rubles, experts from the TsMAKP note, and to neutralize deflationary pressure due to a decrease in the money supply, it will have to reduce the key rate by 0.25 percentage points.

If there is no "compensatory lending" on the part of the Central Bank, a number of serious changes may occur in the banking system, the compression of absolutely liquid assets will be so large that banks will not be able to continue further implementation of payment and settlement activities due to the lack of free funds, the CMAKP believes.

To compensate for the lack of liquidity, banks will begin to sell the fastest-selling assets - government securities and highly liquid foreign assets.

A lack of liquidity will lead to banks issuing fewer loans. The approximate reduction in the loan portfolio will be 4-5%.

Lowering the key rate of the Central Bank will maintain market interest rates at the same level as it was before the introduction of the digital ruble, and compensates banks for the increase in potential costs.

In theory, a tangible outflow of liquidity from bank balance sheets with the introduction of the digital ruble is really possible, then banks will face a funding deficit and will be forced to compensate for this by raising loan rates, which will lead to a decrease in their availability. Most likely, the Bank of Russia understands the possible risks and will do everything to level them and maintain the stability of the system, "said Stanislav Duzhinsky, an analyst at Home Credit Bank .

{{quote 'The introduction of the digital ruble is not an imminent issue for Russia and will require significant resources and time from the government until some positive effect is achieved. As the digital currency develops, banks will gradually feel the outflow of liquidity, Perfiliev added, but it will not be critical due to the strong tension in the implementation process and the uncertainty of the parameters of the functioning of the digital ruble, - Anatoly Perfiliev, Junior Director for Banking Ratings at Expert RA^[38].}}

Central Bank selected 12 banks to test the digital ruble

At the end of June 2021, the Central Bank of the Russian Federation announced the formation of the first pilot group of banks in which the digital ruble will be tested. The list includes:

• Ak Bars Bank;
• Alfa-Bank;
• "Дом.РФ";
• VTB;
• Gazprombank;
• Tinkoff Bank;
• Promsvyazbank;
• Rosbank;
• Sberbank;
• SKB-Bank;
• Bank Union;
• Transcapitalbank.

In the future, the list of operations will expand, and the number of participants in the pilot project will increase, the regulator said.

Testing of the digital ruble will take place in several stages. At the first, it is planned to test the emission of the digital ruble. The experiment will also cover transfers between individuals and the interaction of the client, bank and the digital ruble platform. At the second stage, tests of payment for goods and services will be carried out.

Further, together with banks, we will choose the next stage, depending on what will be most interesting to the market, "Olga Skorobogatova, First Deputy Chairman of the Central Bank, said in an interview with the Russia 24 channel.

According to her, after testing, a decision will be made whether and when to switch to real operations. Skorobogatova stressed that based on the test results, a roadmap for the implementation of the digital ruble will be formed.

To organize such interaction, we quickly formed the first pilot group of banks so that they could configure their systems and processes for piloting from a technical and technological point of view, - added the deputy chairman of the Central Bank of the Russian Federation.

She also noted that for comfortable use of digital currency, it is necessary to ensure a seamless transition from one form of the ruble to another. For this, it is very important to interact with market participants at all stages.

According to the data released by the Central Bank of the Russian Federation at the end of June 2021, the development of a prototype of the digital ruble platform should be completed by December, after which testing will begin.^[39]

Central Bank explained how the digital ruble will help fight fraudsters

In May 2021, the Central Bank of the Russian Federation talked about how the digital ruble will help in the fight against fraud. Such a currency in case of theft can be found by the regulator, while in the case of ordinary non-cash money, this cannot be done, said Deputy Chairman of the Central Bank Alexei Zabotkin during a speech at the St. Petersburg International Legal Forum.

According to him, by May 2021, the funds that a person transferred to fraudsters, and they took them elsewhere, cannot be traced, since "the money is all the same" and "mixed" in the account. This makes it difficult to deal with intruders.

In our case, since any transfer in digital rubles can only be inside the platform of the Central Bank, we will always find the money that a citizen will say that he transferred without his desire, - said the representative of the Central Bank.

According to Zabotkin, the digital ruble has a number of advantages that combine the most convenient aspects of using both cash and non-cash money. Its use allows remote payments, simplifies the storage of large amounts, protects money from physical loss. In addition, the benefits to the business are clear: the transaction fee turns out to be lower. There is also additional functionality that both business and the state can use.

As conceived by the regulator, the digital ruble will be issued in the form of a unique digital code, which is stored in a special electronic wallet, and will become a full-fledged means of payment along with the usual ruble.

On May 18, 2021, Deputy Chairman of the Central Bank Olga Skorobogatova announced that a prototype of the digital ruble would be created by the end of the year.

Further, with the market, we will look at with what stage we will do this project, "she said then, adding that an advisory report on this project was released.[40]

Central Bank presented the concept of a digital ruble

In April 2021 Bank of Russia , he presented the concept of digital. ruble The regulator intends to release a prototype of the corresponding platform in December 2021, and joint banks testing is planned for 2022.

Only from the results of testing will we understand which "roadmap" for the implementation of the platform will be implemented and in what time frame, "said Olga Skorobogatova, First Deputy Chairman of the Bank of Russia.

The Central Bank will establish uniform rules and tariffs for operations in digital currency, but the regulator will make the necessary decisions later, at the next stage of the project. At the same time, the Central Bank previously believes that transfers between individuals should be free. The bank also has no plans to set limits on balances on digital wallets.

The issuer of the digital ruble will be the Bank of Russia, customers will receive access to their wallet, where money will be stored, through the bank's mobile application. In this case, a second wallet will be provided, which will be located directly on the smartphone and responsible for offline operations - settlements in classic stores. It will be possible to replenish it through transfers from a wallet of the first type.

The digital ruble platform, on which its issue and opening of wallets will take place, will have a hybrid model and consist of components of a centralized system and distributed registers.

As follows from the document, as of April 1, 2021, the Bank of Russia received the results of a survey of 196 respondents (experts). Most of them (75%) believe that it is advisable to implement the digital ruble at present. The need for this is caused by the development of digital technologies that reduce the cost and increase the speed of operations, as well as the global trend in the development of national digital currencies.^[41]

Assessment of the impact of the digital ruble on the income of credit institutions - Central Bank of the Russian Federation

At the end of January 2021, the Central Bank of the Russian Federation issued a report on the impact of the digital ruble on the income of credit institutions and their clients.

According to the regulator, after the launch of the digital ruble, a redistribution may occur in favor of customers/depositors of banks, part of the profits of banks with cheap liabilities. This applies primarily to the owners of current, settlement, salary accounts - those ruble accounts on which banks usually charge symbolic interest.

As a result of the emergence of the digital ruble, part of the interest income will be redistributed in favor of the owners of current/current accounts and deposits. Trying to avoid an excessive flow of highly liquid liabilities into the digital ruble and maintain the opportunity to make money on such liabilities, banks will have to raise rates on balances in such accounts (salary, settlement, current), the analytical note says.

Analysts of the Central Bank note that in order to maintain such deposits as a source of income, banks will not necessarily have to raise rates to the market level, since the Bank of Russia will not charge interest on balances in wallets with digital rubles, "so as not to create competition with banks for the savings of citizens."

According to the document, when targeting inflation through managing interest rates, funding deficits in the banking sector as a whole cannot arise in principle.

The Central Bank believes that with the introduction of the digital ruble, loans for borrowers should not become more expensive, since when determining their value, banks are guided by the so-called transfer curve (formed on the basis of comparison with the yield loan of an alternative risk-free placement of money for the corresponding loan period, for example, OFZ profitability), and not on the cost of cheap liabilities, which should flow into the digital ruble.^[42]

Sberbank estimates the safety of the digital ruble at ₽25 billion

As it became known on January 21, 2021, Sberbank estimated the introduction of a digital ruble of ₽25 billion. Moreover, we are talking only about the expenses of the Central Bank and credit institutions to ensure the safety of the use of such currency.

According to Businessman the source "" in one of the 20 largest Russian banks, hundreds of millions will be counted for a large credit institution. rubles For the entire banking system, this will amount to tens of billions of rubles.

A representative of a large bank told the newspaper that for payment infrastructure to work with a digital ruble, both software and hardware will have to be upgraded. He stressed that the more diverse services the bank provides, the more costs it will incur.

According to Vitaly Kopysov, Director of Innovation at SKB-Bank, it would be logical to launch the digital ruble project on the current payment system of the Bank of Russia.

This solution will significantly reduce implementation costs as well as calculation risks. At the same time, banks can become intermediaries due to the already implemented digital channels of customer service, - he said.

The head of the Eleksnet group of companies (part of the MKB group) Igor Antonov believes that it will be possible to calculate the necessary costs and the payback period as the benchmarks for this project appear.

Viktor Dostov, chairman of the Association of Russian Banks (ARB), noted that before deciding on the introduction of the digital ruble, you need to understand what tasks he will solve, how to finance the project and who will incur the costs.

Other participants in the discussion noted that the speed of implementation will depend on whether banks will see the payback of upcoming investments. The Central Bank believes that by January 2021 it is too early to talk about the cost of implementing the project.^[43]

Otkritie Bank: 47% of Russians are ready to use the digital ruble as a means of payment

Otkritie Bank on January 21, 2021 reported the results of a survey, according to which 47% of Russians are ready to use the digital ruble as a means of payment.

39% of Russians know what a digital ruble is and that it can become an official means of payment in Russia. Two-thirds are ready to try to buy some kind of cryptocurrency.

Residents of St. Petersburg (48%) and the Southern Federal District (45%) are best aware of the digital ruble. For comparison, in Moscow, 38% of respondents said about the understanding of what a digital ruble is. The lowest level of awareness of this means of payment among residents of the North Caucasus (67% do not know anything about the digital ruble there) and the Volga (66%) federal districts.

A third of Russians (32%) are definitely positive towards the digital ruble. Most of all convinced supporters are in St. Petersburg (38%), Siberia and the Volga region (35% each).

The majority of Russians - 53% - relate to the idea of ​ ​ the Bank of Russia to make the digital ruble an additional means of payment neutrally. At the same time, 47% are ready to use it along with other methods of payment for goods and services. Most supporters of this position in the North-West District (55%), least of all in St. Petersburg (41%), in the Far East and in the Southern Federal District (42% each).

15% of respondents do not want to use the digital ruble. The main reasons why they are not ready to pay with a digital ruble, people call the high probability of fraud, misunderstanding how to use such a payment method and personal distrust of the digital currency.

57% of Russians surveyed believe that digital currency will displace ordinary money in the future. At the same time, 12% of them are confident that this will happen in 2-3 years, and 45% - in 10-15 years. Every fifth Russian (22%) is confident that the digital ruble will never replace ordinary money.

Russians as a whole are quite tolerant of cryptocurrencies. 7% said they already have experience buying and selling cryptocurrency. By a wide margin among the leaders were the Far East (17%) and the North Caucasus (15%). Whereas in the Urals, only 2% have experience in transactions with the "crypt." Another 63% of Russians (and the same share of Muscovites) want to try to buy some cryptocurrencies, since they are constantly growing in price. 14% don't want to deal with cryptocurrencies ever. At the same time, only 16% of Russians said that they do not know at all what cryptocurrency is.

Russian banks: the Central Bank has not yet outlined the goal of introducing virtual currency

Russian financial the market expressed doubt about the need to introduce a digital ruble in the country. This became known on January 12, 2021. According to Businessman"," his representatives noted that CENTRAL BANK he has not yet formulated the goal for which he seeks to launch Russia into the national digital currency.

CNews previously wrote that the Central Bank announced preparations for the issue of the digital ruble back in mid-October 2020, publishing a corresponding report. At the same time, he invited the participants in the Russian financial market to send him their vision regarding this idea, but no later than December 31, 2020. The Central Bank's report on the issue of the digital ruble says that it will become one of the so-called "digital currencies of central banks" (CBDC; Central Bank Digital Currencies, CBDC) and will apply in addition to existing forms: cash and non-cash rubles. In early December 2020, Deputy Chairman of the Central Bank of Russia Alexei Zabotkin confirmed that the regulator would definitely issue a digital ruble.

Among others, the Association of Electronic Money and Money Transfer Market Participants (AED) and the National Financial Market Council (NSFR) sent their opinions on the "crypto ruble ." Representatives of the National Payment Association (NPA) also expressed their opinion.

What is described there may well be decided by the available means, and first of all, you need to decide on what it is needed for, and not on the forms of implementation of the project, - said the executive director of the NPA Maria Mikhailova.

The introduction of a digital ruble and the conversion of part of non-cash money into digital rubles will reduce the liquidity of the entire banking system, which will proportionally reduce the volume of potential credit resources in the economy as a whole, the NSFR said in a letter.

With caution towards the digital ruble, analysts at the to data RBC Center for Financial Technology Research and. digital economy In their opinion, its implementation may lead "to the loss of the central banks role of an independent participant in the financial market, and in some cases this form of currency may put unnecessary pressure on commercial players or be completely unclaimed."

Experts believe that the introduction of the digital ruble in the end may also turn out to be a suboptimal expenditure of resources if its target audience is fully satisfied with the set of financial instruments it has. In addition, another version of the national currency may be too difficult for the country's population, and in the end it will not be in demand for them^[44].

2020

Central Bank: Digital ruble will help introduce smart contracts for state payments

On December 23, 2020, the first deputy chairman of the board of the Central Bank of the Russian Federation Skorobogatov, at an online speech by representatives of the regulator, said that the digital ruble would allow the use of smart contracts. In particular, according to her, such a technology can be used in state payments, government and financial services.

The digital ruble, among other things, was conceived in order to be able to implement smart contracts. The digital ruble is not equal to smart contracts, but the digital ruble absolutely provides the opportunity to use different smart contracts, Skorobogatova said.

According to her, the digital state currency will also help in the creation of new services. For example, you can automatically pay a contract after certain conditions have been met.

We believe that from the point of view of reducing costs, the possibility of using the digital ruble will give consumers and businesses a decrease in its costs of servicing non-cash payments that exist at the moment, she said.

The first deputy chairman of the Bank of Russia added that some smart contracts will be clearly spelled out at the level of state programs or social payments. But commercial players will be able to use smart contracts with a digital ruble themselves as part of their relationship, she explained.

Skorobogatov also said digital currencies could reduce transaction costs, which are particularly high in international settlements. Such settlements in digital currencies may begin on the horizon of five to seven years, when several countries will start issuing a new form of money (by December 2020, more than 30 central banks are working on their creation). The prototype of the digital ruble, as Olga Skorobogatova said, will have to be launched at the end of 2021.^[45]

Sberbank: 4 trillion rubles will be transferred to the digital ruble, and loan rates will soar

On December 16, 2020, information appeared that Sberbank predicts an outflow of liquidity from banks of 2-4 trillion rubles. three years after the appearance of the digital ruble, if it is issued according to one of the models proposed by the Central Bank, which could lead to a liquidity deficit in the sector. In addition, the introduction of the digital ruble may lead to an average increase in interest rates by 0.5 percentage points. This was stated by the deputy chairman of the board of Sberbank Anatoly Popov.

According to our forecasts, three years after the launch of the digital ruble, we will see that about 2-4 trillion rubles will be transferred to the digital ruble. These funds will cease to be available for lending, which will ultimately move to a liquidity deficit and, as a result, an increase in rates, he said (quoted by RIA Novosti).

According to him, such a scenario is possible if the Central Bank implements a digital ruble project according to a model in which the regulator will independently issue this currency, issue it and service transactions related to it. Thus, wallets with digital rubles will be located in the Central Bank, and not in banks that now use customer funds for lending, and the issued financing is most often credited to settlement accounts, which allows maintaining liquidity in credit institutions.

At the same time, Anatoly Popov noted that the emergence of a digital Russian currency is relevant, since it is excellent to integrate into new settlement mechanisms using blockchain technology.

"The digital ruble is fully suitable to integrate into new calculation mechanisms. However, we believe that the discussed models for the development of digital currency have a number of serious shortcomings and limit, among other things, the activities of commercial banks, "Anatoly Popov said.

According to the estimates of the National Council of the Financial Market (NSFR), the introduction of digital rubles into the monetary system by replacing cash and non-cash money, and not with the help of an additional issue, will lead to a significant, up to several trillion rubles, loss of liquidity by banks.

Sberbank offers an alternative model, which involves the purchase of additional attributes by non-cash rubles, in particular, to expand the properties of digital currency for all non-cash money, Popov noted. The state bank believes that the payment system will receive more advantages from the evolution of the non-cash ruble than from the creation of an additional digital currency.^[46]

In October, the Bank of Russia reported that it was assessing the possibility of issuing a digital ruble. It will take the form of a unique digital code that will be stored in a special electronic wallet, and the transfer of the digital ruble from one user to another will take place in the form of moving the digital code from one electronic wallet to another. The digital ruble will be a full-fledged means of payment along with the usual ruble and will be able to be widely used by the population, business and the state in the payment sector, ensuring ease of payments, their high speed, low costs and high reliability. In total, the regulator proposed four models for the issue of digital currency.

Model A assumes that the Central Bank creates the Central Bank's digital currency (CBDC), issues CBDCs and opens wallets to banks for interbank settlements and securities transactions on the CBDC platform. At the same time, individuals and legal entities do not have access to the CBDC. This model is not planned by the Bank of Russia for further development, since it does not carry additional advantages for citizens and businesses compared to existing payment systems.

According to Model B, the Central Bank creates a CBDC platform, issues CBDCs and provides direct access to CBDCs to individuals and legal entities, as well as carries out AML/CFT/FROMU procedures, open wallets to customers and make settlements on them. The central bank can also open settlement accounts of customers and cash and settlement services without opening an account for settlements in the Central Bank. Each client opens only one wallet in the CBDC. Settlements on wallets in the CBDC are carried out by the central bank directly with customers without the participation of banks/financial intermediaries.

According to model C, the Central Bank creates a CBDC platform, issues CBDCs and provides access to CBDCs to individuals and legal entities, including opening wallets to clients (individuals and legal entities) in CBDCs and making settlements on them. Each client opens only one wallet in the CBDC. The opening of the wallet and access of customers to it can be carried out through any bank or through another financial intermediary connected to the platform.

In Model D, the Central Bank creates a CBDC platform, issues CBDCs and provides access to CBDCs to individuals and legal entities. Each client opens only one wallet in the CBDC. The client can access the wallet for settlements through any bank or through another financial intermediary connected to the platform.

Anatoly Popov proposed a fifth model to extend the benefits of digital rubles, such as automating the control of their targeted spending, to all non-cash rubles and make all non-cash rubles digital.

Freedom Finance analyst Yevgeny Mironyuk believes that it is premature to conclude about the capabilities of this digital currency. In particular, in his opinion, this concerns the possibilities of lending using digital currency.

"Therefore, Sberbank's assumptions regarding the outflow of liquidity from banks in the amount of 2-4 trillion rubles three years after the appearance of the digital ruble, as well as regarding the growth of credit rates by 0.5%, are premature. Modern instruments of the financial market are able to provide the banking sector with the necessary amount of liquidity and without attracting customer funds, "says Evgeny Mironyuk.

According to him, the main risk for commercial banks is that settlement and cash services cease to be a key source of income for them, as RKO flows into the CBDC blockchain (CBDC).

"Also, a potential risk is the peculiarity of mutual settlements in digital currencies, which theoretically allows you to attract deposits and issue loans to R2R (peer-to-peer), that is, individual participants in mutual settlements among themselves without the mediation of credit institutions. Subject to a number of restrictions, such an opportunity can be realized, "said Evgeny Mironyuk[47]

Banks fear competition with the Central Bank of the Russian Federation after the launch of the digital ruble

Banks fear competition with the Central Bank of the Russian Federation after the launch of the digital ruble, since in case of unrest, citizens can transfer money from bank accounts to digital wallets at the Bank of Russia. This opinion was expressed by the head of Finam Vladislav Kochetkov at a meeting of representatives of the regulator and participants in the financial market at the end of November 2020.

Kochetkov believes that the introduction of the digital ruble may lead to an increase in tariffs for customers, since banks will have to reimburse lost income. According to the managing director of the NKR rating agency Stanislav Volkov, settlement and cash services bring banks more than 600 billion rubles a year of income, which can be reduced "if it becomes possible to pay with a digital ruble."

The fact that with the introduction of the digital ruble, the Central Bank will begin to compete with banks for customers, said the head of VTBANDRAY Kostin. According to him, it is not clear how commercial banks will be integrated into the digital ruble system and how they will be able to maintain business.

Doing business is definitely not doing the Central Bank, "he emphasized.

First Deputy Chairman of the Board of the Central Bank Sergei Shvetsov said that the Bank of Russia expects the digital ruble to stimulate competition in the settlement market, where other players will be able to enter along with banks. Thanks to such a currency, settlements will move from banks to other financial intermediaries, he is sure.

The Central Bank is holding a series of discussions of the report on preparations for the release of the digital ruble, it should decide on the appearance of the project in the first quarter of 2021, and then begin its phased implementation. The market was offered four models, most banks and other financial companies supported the option in which banks and financial intermediaries open and maintain their wallets and wallets of clients on the Central Bank platform, said Olga Skorobogatova, First Deputy Chairman of the Central Bank.^[48]

In Russia, created a "digital container" for the digital ruble

In early November 2020, the Russian Association of Cryptocurrencies and Blockchain (RAKIB) announced the creation of a digital container for operations with a digital ruble. This is stated in a letter that RAKIB President Yuri Pripachkin sent to the head of the Central Bank of the Russian Federation Nabiullina. Read more here.

Digital ruble may enter circulation in Russia in 3-7 years

The digital ruble may enter circulation in Russia in three to seven years, said Dmitry Peskov, Special Representative of the President of the Russian Federation for Digital and Technological Development, in October 2020. According to him, Russia will not be able to enter the world leaders in this area.

Let's see what the leader will do, what barriers he will rest on. We will not beat our heads against his wall and will try to get around, as happened with us, for example, with non-cash payments. The central bank calmly built the appropriate infrastructures, and at some point we bypassed many countries at a turn. This is, as they say now, a "Russian card miracle." I think our Central Bank and the Ministry of Finance are definitely capable of another such miracle, "Peskov said in a conversation with RIA Novosti.

He noted that one of the tasks of the digital ruble is to solve the problem of poverty and increase the transparency of payments.

All conversations and government programs to combat poverty rest on the need to move to an address model in order to help those who really need, and not who are formally supposed to, - said Peskov

In order to use this kind of digital services, you need access to digital infrastructure, there must be two things: a special device and Internet access, continues the special representative of the president.

We have at least two infrastructures that reach almost every person in the country - Sberbank and Russian Post. I quite admit that both receiving a pension and other payments can take place in a situation where a grandmother in Ivanovo comes to the post office and an advanced girl on the device shows her everything and tells her how to do it, "he concluded.

According to the head of the State Duma Committee on the Financial Market Anatoly Aksakov, the digital ruble will begin to be tested in 2021.^[49]

Accounts with digital rubles will be maintained by the Central Bank itself without banks

It is assumed that digital rubles can be used for payments and savings.

At the same time, unlike traditional non-cash rubles, the "digital" will be located outside the banking system - on the "electronic wallets" directly in the Central Bank. The transfer of the digital ruble from one user to another will occur in the form of moving the digital code from one electronic wallet to another.

As conceived by the regulator, transactions in the digital ruble, as in traditional paper banknotes, can be carried out offline - that is, without access to the Internet or mobile communications.

The digital ruble is designed to replace paper money, which has long become a headache for the financial authorities, as it allows payments to be made within the "gray economy," the size of which cannot be calculated by either the government or the Central Bank.

With the digital ruble, this problem can be solved. For example, to control the target use of the funds, it will be possible to "mark with a special sign," the regulator suggests.

At the same time, the state will be able to "automatically track the flow of funds," the Central Bank emphasizes: for example, within the framework of state contracts or other budget payments and "prohibit their spending for purposes that do not correspond to their purpose."

In the new system, the central bank actually offers citizens to open accounts not in banks, but directly in the Central Bank. That is, we are talking about "competition between the Central Bank and commercial organizations for deposits."

Announcement of the development of the digital ruble

On October 13, 2020, the Central Bank of the Russian Federation announced the creation of a digital ruble, which should become the third means of payment in Russia. Such a currency can be issued using digital technologies. But unlike the cryptocurrency digital currency of the Central Bank, this is an equivalent form of the national currency, the regulator emphasizes.

As reported on the Central Bank website, the digital ruble will be able to make payments even faster, easier and safer. The development of digital payments, equal access to the digital ruble for all economic agents will lead to a decrease in the cost of payment services, money transfers and to increased competition among financial organizations. This will serve as an incentive for innovation both in retail payments and in other areas and will support the development of the digital economy. And reducing users' dependence on individual providers will increase the stability of the country's financial system, the Central Bank explained.

The regulator is considering three ways to implement the digital ruble project - using distributed registers, using a centralized register (better coping with heavy loads), as well as a hybrid model. Convenient user interfaces for new electronic wallets should, according to the Central Bank, provide banks and other financial service providers.

At the same time, the final decision on the release of the digital ruble by October 13, 2020 has not yet been made, for this public consultations are necessary. The company has formed a request for "increasing the speed, convenience and security of monetary settlements using modern technologies," the Bank of Russia said.

It is noted that if the decision on the digital ruble is positive, its introduction will be phased, with a preliminary pilot project. The regulator expects feedback on the report until December 31, 2020.^[50]

2017: Minister of Communications Nikiforov: "We will launch a crypto-ruble"

The Minister of Communications and Mass Media of the Russian Federation Nikolai Nikiforov announced on October 16 that Russia  would issue its own cryptocurrency - this decision was made by the President of the Russian Federation.

"I declare so confidently that we will launch a crypto-ruble for one simple reason: if we do not do this, then in two months our neighbors in the EurAsEC will do it," the minister said.

He stressed that for the effective operation of domestic cryptocurrency, it will be necessary to streamline the payment of personal income tax.

2016: National cryptocurrency may appear in Russia

Russia plans to introduce a national cryptocurrency, writes on Friday the Kommersant newspaper ^[51] with reference to Rosfinmonitoring. State Secretary, Deputy Director of the department Pavel Livadny told the publication that now this idea is being discussed with interested parties - representatives of banks, at meetings in the Ministry of Finance and the Central Bank of the Russian Federation. According to him, there is no bill yet^[52].

The interlocutor explained that the Russian cryptocurrency should not be issue-free - generated by a computer using a certain algorithm as bitcoin, it should have an issuer with rights and obligations. Such an issuer, according to him, may be "financial organizations that will be entrusted with the issue of cryptocurrencies."

The department suggests that, most likely, this activity will be licensed. Companies and citizens will be able to exchange rubles or other currency for cryptocurrency in so-called exchangers - on special electronic platforms. In addition, it is planned to regulate the rules of exchange. At the same time, the identity of the cryptocurrency acquiring will be necessarily identified "to minimize anonymous transfers."

It is assumed that simultaneously with the introduction of domestic regulated cryptocurrency, other cryptocurrencies will be prohibited from circulating in the country.

Notes