Russian Central Bank Conducts Trials for National Digital Currency

The Central Bank of Russia has initiated a pilot program in the Tatarstan region to trial smart contracts for the digital ruble.

The Central Bank of Russia has suggested to the Tatarstan region to participate in the pilot program for the digital ruble, with an emphasis on evaluating smart contracts. The objective is to trial the conditional spending of funds allocated for particular purposes, which will be carried out through the bank's testing platform.

The Ministry of Finance of Tatarstan has accepted the Central Bank of Russia's suggestion and has established a working group to supervise the testing of digital ruble transactions in the region.

Upon completion of the testing phase, Tatarstan's Finance Ministry and the CBR will outline the requirements for the targeted use of hypothetical budget subsidies. These requirements will be incorporated into a smart contract, and the experiment is expected to conclude in the third quarter of 2025.

The Central Bank of Russia had initially planned a widespread rollout of the digital ruble starting July 1, 2025; however, as announced by CBR head Elvira Nabiullina, these plans have been delayed. A new launch date will be announced in due course.

According to Nabiullina, the comprehensive rollout will only take place after extensive testing and consultations with banks about the most economically feasible model for clients. Despite the delay, the pilot program has been progressing successfully.

To provide context, the law regarding the launch of the digital ruble in Russia came into effect in August 2023, with the first phase of testing beginning on August 15. However, the Central Bank of Russia postponed its national rollout, raising concerns about the initiative being abandoned.

The introduction of the digital ruble by the Central Bank of Russia is part of a broader trend where national banks are investigating and testing Central Bank Digital Currencies. In Sep. 2024, Reuters reported that 134 countries were considering launching national CBDCs.

Several countries have already launched testing of their CBDCs, including China, Korea, Papua New Guinea, and the United Kingdom. The European Central Bank is also conducting its multi-year testing of the digital euro. Moreover, the Bahamas, Jamaica, and Nigeria have already launched their CBDCs, becoming pioneers in digitizing national fiat currencies.