Key Takeaways
- Russian banks have requested that the digital ruble leverage smart contracts.
- The U.S. has officially banned the development and issuance of a digital dollar CBDC.
- 134 countries have embarked on developing and launching CBDCs.
Russia’s central bank digital currency (CBDC) ambitions have hit an interesting hurdle. Feedback from the pilot phase reveals that financial institutions would like to see smart contracts implemented into the digital ruble.
Now that the U.S. has officially banned the creation of a digital dollar CBDC, the global race to launch a CBDC has been left wide open for the EU, China, and perhaps even Canada.
Russia Stalls CBDC
According to an official announcement from the Bank of Russia (BoR), the launch of its digital ruble CBDC is being pushed back following feedback and questions from major banking entities, namely its largest bank, Sber, and merchants.
In an address to Russia’s banking association, Chairman of the Central Bank of Russia Elvira Nabiullina noted that pilot testing had been a success with fifteen banks and thirty companies with 1,700 citizens taking part. However, in the translated announcement, Nabiullina explains:
“We continue to receive questions from you about the amount of necessary improvements and requests for a shift in the timing of the widespread introduction of the digital ruble.”
The BoR head highlights that banks have expressed an interest in smart contracts, which the bank now sees as a “key component” of its CBDC. She adds:
“Therefore, our intention is to move to the mass introduction of the digital ruble a little later than originally planned, namely after we work out all the details in the pilot and consult with banks on the economic model, which is most attractive to their customers – for business, for people.”
As a result, the full launch of the digital ruble CBDC has been stalled until further notice.
The news follows reports that Russian citizens and businesses were concerned with how the CBDC may be mandated, fearing that its use would be enforced by law and that the tokens could expire. The BoR has since sought to offer clarity in the wake of these rumors.
Global CBDC’s
Out of the 134 countries that have set out to launch a CBDC, seven have been canceled. Three have launched in Jamaica, Nigeria, and Zimbabwe.
There are currently twenty-eight countries in the pilot stage, including France, Singapore, Hungary, China, and India.
The EU has been working on developing and testing its own CBDC, the digital euro, for some years. Most recently, it embarked on developing a blockchain-based settlement system that could lay the groundwork for its digital euro ambitions.
Thirty countries, including Japan, Canada, and Hong Kong, are in the proof of concept phase, while major economic powers, such as the U.K., remain in the research phase.
When Donald Trump signed an executive order to prohibit the development and issuance of CBDC’s, it sent a clear message to the crypto industry that U.S. dollar-pegged stablecoins may finally have their chance to shine.
To others such as China or the EU, a giant competitor just fell out of the race.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
