Belarus is joining Russia in the development of a central bank digital currency (CBDC) and is planning to launch a digital version of the Belarusian ruble for cross-border payments. The National Bank of the Republic of Belarus (NBRB) has identified the introduction of a digital ruble as one of its most significant projects in recent years.
Dmitry Kalechits, the NBRB’s Board’s Deputy Chairman, stated that the digital Belarusian ruble will be used at the cross-border level and will have the same value as the physical currency. The central bank will issue the digital ruble, which will function as legal tender. This aligns with Moscow’s plans for the digital ruble, which is expected to have compatibility with other global CBDCs, including China’s digital yuan.
The NBRB has been making progress on its CBDC project. Earlier this year, Pavel Kallaur, the bank’s Governor, announced plans for a CBDC experiment involving a narrow group of participants, including commercial banks and individuals. However, at that time, Kallaur emphasized the need to assess the feasibility of a digital Belarusian ruble and obtain presidential approval.
Russia’s significant advancements in its digital ruble project seem to have motivated Belarus to accelerate its own CBDC plans. Settlements with the digital ruble will be classified as non-cash payments, similar to Russia’s CBDC law. Russia has already started a CBDC trial, with several commercial banks testing digital ruble transactions with selected customers. In contrast, Belarus has been actively courting cryptocurrency firms, offering them incentives such as visa waivers and tax-free status until at least 2025.
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Belarus President Alexander Lukashenko discussed the CBDC launch with Elvira Nabiullina, the crypto-skeptic Governor of the Russian Central Bank. As a result of their conversation, Lukashenko and the NBRB pledged to make a final decision on the CBDC launch by the end of the year. However, it appears that the bank has made progress since May to align its plans with Russia’s CBDC project.
As Belarus prepares to launch its digital ruble, it joins the ranks of countries exploring the potential of CBDCs. These digital currencies offer numerous benefits, including increased efficiency in cross-border payments, enhanced financial inclusion, and greater control over monetary policy. While the full impact of CBDCs on the global economy is yet to be seen, their development signifies a shift towards a more digitized and interconnected financial system.
In conclusion, Belarus is moving forward with its plans to introduce a digital version of the Belarusian ruble for cross-border payments. The National Bank of the Republic of Belarus considers this project to be one of its most significant ventures in recent years. The digital ruble will function as legal tender and have the same value as physical currency. Belarus’s progress in its CBDC project is aligned with Russia’s plans for the digital ruble. As both countries explore the potential of CBDCs, the global financial landscape is evolving towards a more digitized and interconnected future.
