The implementation of the digital ruble is encountering obstacles, with 30% of Russian banks ill-equipped due to outdated systems and hesitance to align with the central bank’s plans for a central bank digital currency (CBDC).
A recent poll by tech companies Flant and Diasoft revealed that approximately 30% of Russian banks are not yet ready to embrace the digital ruble, which serves as Russia’s form of CBDC.
As reported on March 14, local banks seem hesitant to function as “agents” for the central bank. The primary issue appears to be apprehension about losing control over their clients’ finances and the imposition of stricter transparency regulations.
Experts in the region indicate that banks are aware that the digital ruble would involve ceding some control and increasing their reporting obligations to the Bank of Russia, suggesting that this transition is “clearly not in the banks’ best interest.”
The survey, which included over 150 IT directors and banking professionals, found that a mere 20% of banks reported their infrastructure being ready for the digital ruble, while around 50% stated they were only partially prepared.
Moreover, 14% of participants expressed concerns regarding data security risks linked to the stringent data protection regulations. Despite the challenges, some banks, including those facing sanctions like VTB, Sberbank, and Gazprombank, are already moving forward with preparations for the transition.
At the end of February, it was noted that the Bank of Russia postponed the widespread launch of the digital ruble. Authorities stated that a new launch date would be provided later, emphasizing the need to ensure the system is advantageous for both banks and their customers.
The pilot program for the digital ruble commenced in August 2023, allowing selected banks and users to test payment functionalities. While the government initially aimed for a broader rollout by July 1, the timeline now remains uncertain.