Russian CBDC Pilot Delayed Due to Legislative Process

03/29/2023 08:26 • Tech Trends • 123 views

It is reported that due to the legislative process, the Russian CBDC pilot will not start on April 1, and the legislation may be finally promulgated in early May. The number of private banks participating in the pilot has also changed from 15 to 13. It is understood that staff from some of these banks will become test participants in CBDC retail payments, as well as Ingosstrakh, one of the country’s largest insurance companies.

Due to the legislative process, Russia postponed the start test time of CBDC

The Russian central bank has been planning to launch a pilot program for its digital currency, the Central Bank Digital Currency (CBDC), for quite some time now. However, the launch date has been pushed back several times. It was initially scheduled to start on January 1, 2021, but it was delayed until April 1, 2021.
Recently, it has been reported that the legislative process may cause further delay in the implementation of the CBDC pilot. As a result, the launch may be finally promulgated in early May instead of April 1. This will mean that the launch date has been pushed back again, this time by a month.

Private Banks Involved in the Pilot

Initially, 15 private banks were to participate in the CBDC pilot, but the number has changed to 13. These banks will have staff members who will become test participants in CBDC retail payments. Ingosstrakh, one of the largest insurance companies in the country, will also join the pilot.

Implications of the Delay

The delay in the CBDC pilot launch has raised concerns about the readiness of the Russian financial system to adopt digital currencies. It is also seen as a missed opportunity for the country to have a first-mover advantage in the digital currency space.
However, the central bank believes that it is important to get the legislative framework right before launching the CBDC pilot. The bank has emphasized that the CBDC must comply with all legal requirements and be integrated into the existing financial infrastructure seamlessly.

The Benefits of CBDCs

Central bank digital currencies have become a popular topic in the financial world over the past few years. These digital currencies are expected to bring several benefits, including:
– Improved transaction speed and efficiency.
– Lower transaction costs, as digital currencies do not require physical infrastructure like cash.
– Increased financial inclusion, as CBDCs can be accessed by more people.

Conclusion

The delay in the Russian CBDC pilot launch is a setback for the country’s efforts to enter the digital currency space. However, it is important to get the legislative framework right before launching the pilot. CBDCs have the potential to bring significant benefits to the financial system and improve financial inclusion.

FAQs

1. Why has the launch of the Russian CBDC pilot been delayed?
The legislative process is causing the delay in the implementation of the CBDC pilot.
2. How many private banks are involved in the pilot?
Initially, 15 private banks were to participate in the CBDC pilot, but the number has changed to 13.
3. What are the benefits of CBDCs?
CBDCs are expected to bring several benefits, including improved transaction speed and efficiency, lower transaction costs, and increased financial inclusion.

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