VSK to participate in digital ruble pilot, starting with property, health insurance

MOSCOW. Aug 10 (Interfax) - VSK Insurance House will participate in the pilot project with real digital rubles that Russia is set to begin later this month, the insurer said in a statement.

At the initial stage of the pilot, digital rubles will be used to purchase insurance products. At VSK, property and health insurance policies will be available for purchase with digital rubles.

In future, the company is considering using digital rubles in mutual settlements with counterparties. In addition, smart contract technology opens up potential for new products and services that will need to be tested.

In the pilot project, VSK plans to test the whole chain of transactions with the digital ruble, which includes the regulator, banks, the insurer and customers. VSK said it believes using digital rubles in settlements will improve and supplement the customer experience, both in regards to the level of service and the internal business processes of financial market participants.

"Russians' demand for this digital instrument will depend in large part on how well attuned business processes within the financial industry will be," VSK's deputy CEO for business development, Olga Sorokina said. The digital ruble has broad potential for use in the retail financial services industry, including insurance, she said.

The Central Bank of Russia (CBR) will begin a pilot with real digital rubles on August 15, when, during its initial stage, customers will be able to open wallets, make transfers and pay for goods and services, CBR first deputy governor Olga Skorobogatova said earlier.

She said 13 banks that are participating in the first stage of the pilot have gone through all the preparatory measures, including development of mobile apps, and are ready to start transactions with real customers on August 15.

The list of banks at this stage of the pilot includes Alfa Bank, DOM.RF Bank, Ingosstrakh Bank, VTB , Gazprombank , Qiwi Bank, Ak Bars Bank , MTS Bank , Promsvyazbank (PSB) , Sovcombank, Sinara Bank, Rosbank and Transcapitalbank.

The law on the introduction of the third form of national currency (digital ruble) in Russia entered into force on August 1. Earlier, the Central Bank said that in August it intends to launch a pilot with real digital rubles with the participation of 13 banks.

The pilot will take place in several stages in 2023 and 2024. The first stage of testing will take place in a "friends and family" mode, and about 600 individuals will participate, according to Skorobogatova. They will test the opening and closing of digital wallets, their replenishment and transfers between individuals, automatic payments and transfers, as well as payments and refunds for goods and services with digital rubles via QR codes. Payment will be tested by 30 trade and service enterprises in 11 cities, which were selected in advance by banks and the regulator. At the next stages, the list of participants and tested operations will be expanded.

The introduction of the digital ruble into wide circulation is expected to begin gradually from 2025.