Central Bank of Russia discussing with banks attractiveness of digital ruble's economic model for market - Nabiullina

MOSCOW. Feb 20 (Interfax) - The Central Bank of Russia is discussing with lending institutions an economic model for the digital ruble that would be attractive to market participants, Central Bank Governor Elvira Nabiullina said on the sidelines of the Cybersecurity in Finance forum.

The digital ruble is the third form of the Russian national currency that the Central Bank plans to issue in addition to the existing forms of cash and non-cash money. The Central Bank has been conducting a pilot with real digital rubles since August 15, 2023. The number of pilot participants is gradually expanding to include both individuals and legal entities. The number of transaction types being tested is also increasing. Introducing the digital ruble into wide circulation is expected to begin gradually in stages as of July 1, 2025.

"In addition to technical readiness, an economic model is required that would be interesting to clients and banks in order for operations with the digital ruble to occur and for them to develop," Nabiullina said.

"We are currently discussing the attractiveness of the economic model for market participants," she said.

In October last year, the State Duma adopted in the first reading bill No. 576830-8, which envisages extending the requirements of Federal Law No. 115-FZ "On combating the legalization/laundering of criminally obtained incomes and the financing of terrorism" (AML/CFT) to transactions with the digital ruble. When preparing the bill for the second reading, it was decided that not only would the Central Bank perform the main AML/CFT functions on the platform, as originally envisaged, but banks would as well.

"The law has not been adopted to date. Among other matters, it will have to establish the implementation of 'anti-money laundering' procedures. This will be primarily on the banks' side. The banks are aware that this is being prepared. Of course, a law needs to be adopted. After the law has been adopted, a certain amount of time is required for the banks to set up all the systems. This is not a simple process," Nabiullina said.

Several large banks that will be required to allow customers to conduct transactions with digital rubles as soon as July 1 this year have said that they hope technically to meet the deadlines set by the regulator. However, there is a risk of delay owing to the ongoing revision of the regulatory framework, including the above-said law, as well as the digital ruble platform itself.