Russian banks are set to question the Central Bank of Russia (CBR) regarding its digital ruble pilot program next month. This move comes as some sections of the banking industry express backlash and concerns following the CBR’s commencement of real-world transactions with its central bank digital currency (CBDC) earlier in the month. Notably, megabanks Sberbank and Tinkoff Bank withdrew from the pilot just before its launch, citing undisclosed reasons.
The Association of Banks of Russia (ASROS), the largest banking industry group in the country, previously wrote to the CBR to seek guarantees about the future of the CBDC. ASROS claimed that its members’ customers were apprehensive about the CBDC. Addressing these concerns, ASROS will have the opportunity to obtain answers during the 20th edition of its international banking forum in Sochi next month.
According to an official announcement, Central Bank officials, including Governor Elvira Nabiullina, the bank’s financial stability chief, and two Deputy Governors, will attend the event. Nabiullina, who is a chief architect for the digital ruble and a close ally of President Vladimir Putin, has often expressed skepticism towards cryptocurrencies.
Nabiullina aims to expedite the nationwide launch of the digital ruble by 2025-2027, a timeline that has unsettled many commercial banks. The ASROS forum will include a round table session titled “The Digital Ruble: Future or Reality?” This session, chaired by Georgy Luntovsky, the President of ASROS, will provide an opportunity for attendees to question Alla Bakina, Director of the CBR’s National Payment System Department, along with other Central Bank officials.
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The forum will also feature prominent executives from banking giants such as Promsvyazbank (PSB) and Center-Invest Bank, who will have the chance to address their concerns directly to Bakina. The Central Bank is expected to discuss the preliminary results of the pilot and its vision for the future stages of CBDC development during the event.
PSB’s customers recently became the first non-bank employees in Russia to utilize the digital ruble, with one client using the CBDC to pay for education-related B2C services. This real-world usage of the digital ruble marks a significant milestone in the pilot program.
The ASROS forum, scheduled for September 27-30, will facilitate an open conversation between the Central Bank and banks, allowing them to raise questions and seek clarification regarding their concerns related to the CBDC. Luntovsky expressed his anticipation for the discussion on the results of the first pilot stage, emphasizing that it provides an invaluable opportunity for banks to address their CBDC-related apprehensions.
As the digital ruble pilot progresses and garners feedback from banks and customers, it will play a crucial role in shaping the future of Russia’s digital currency landscape. The opportunity for banks to directly engage with the Central Bank and raise their concerns will contribute to a more inclusive and informed decision-making process.
By regularly engaging with the banking industry and addressing their apprehensions, the Central Bank can instill confidence in the digital ruble and ensure that it meets the needs and expectations of all stakeholders. The digital ruble has the potential to revolutionize Russia’s financial landscape, offering greater security, efficiency, and accessibility for both businesses and individuals.
