The Bank of Russia Opens the Door to Full-Scale CBDC Use in the Country by 2025
The digital ruble has pushed Russia to the forefront of the modernization of payment infrastructure.
The Bank of Russia is planning for 2025 as the possible year of broad adoption of the digital ruble, the national central bank digital currency (CBDC). It’s clear that the central bank is taking a proactive tack toward updating the country’s payment infrastructure with this decision.
With the launch of the digital ruble in Russia, concerns have been raised over whether or not people would be required to accept only central bank digital currency (CBDC) for all state payments in the future. This is analogous to the 2014 implementation of the Mir payment system, a state-controlled card payment system designed to dispel fears of American and European sanctions.
According to the Bank of Russia, the digital ruble is not meant to replace traditional currency but rather to live with it. However, China, a country often seen as a reliable friend of Russia, has begun making digital yuan payments to Changshu’s government employees.
Russia’s geopolitical position is not expected to improve or change drastically after the introduction of the digital ruble. Officials in Russia have also admitted that trials of CBDC can only be done in conjunction with countries that have the necessary technology and are cooperative.
The digital ruble has no connection to the government’s plans to acquire biometric data, as previously stated by the Russian Central Bank. About a month ago, the bank began testing CBDC in eleven Russian cities.