Russian banks are continuing to show interest in the digital ruble pilot program, with Center-invest Bank set to join the trial next year. Based in Rostov-on-Don, Center-invest Bank has signed a partnership agreement with the Central Bank, which operates the CBDC. This move will make the bank a part of the second group of banks that will test the digital ruble in real-world scenarios.
The media outlet Rostov Gazeta reported that the second group of banks is currently preparing systems and protocols to test operations with the digital ruble. The first batch of Russian banks, including major players like VTB, began piloting the coin with 600 of their clients and employees in 11 cities across the country in August. Since then, the Moscow Metro has started accepting digital ruble payments.
However, the Central Bank faced a setback when Sberbank, Russia’s largest bank, pulled out just before the CBDC pilot launch. The decision of Russia’s most powerful and lucrative financial institution not to participate in the pilot has raised questions about its CBDC intentions. As of now, there are no indications that Sberbank will join the second group of banks.
The inclusion of Center-invest Bank in the pilot is significant due to its nature. While not a strictly regional bank, it primarily serves customers and businesses in Southern Russia. This move may indicate that Russia is following the Chinese CBDC playbook, where larger state-run banks were the first to join the digital yuan pilot, followed by regional banks.
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The identity of the remaining banks in the second group has yet to be officially confirmed. However, the Central Bank has previously announced that this group will comprise 16 banks and will join the pilot in 2024. A senior executive at Center-invest Bank expressed excitement about participating in the pilot, stating that the introduction of a digital currency is a qualitative shift in the field of global payments. Joining the pilot will provide the bank with the opportunity to experience all the advantages of using digital currencies and improve its future payment infrastructure to offer clients new products and services.
Center-invest Bank was founded in 1992 by a group of privatized Southern Russian companies. While not specifically a regional bank, its focus on serving the Southern region aligns with its inclusion in the digital ruble pilot program.
The expansion of the digital ruble pilot program indicates growing interest and adoption of CBDCs in Russia. With more banks joining the pilot, the Central Bank can gather valuable insights and data to refine the digital ruble’s functionality and address any potential challenges. The successful implementation of a digital ruble could have far-reaching implications for the Russian economy by enhancing payment systems, improving financial inclusivity, and increasing the efficiency of transactions. Moreover, it positions Russia at the forefront of the global CBDC race, potentially offering new opportunities for economic growth and international collaboration.
